In this week?s South American weather and crop update, Allendale commodity broker Greg McBride says South America is still pretty dry.
At this point, it?s the same old song and dance: South America is dry, and, while it?ll help harvest progress in Argentina, it?s continuing to hurt Brazil?s safrinha crop. McBride says that harvest estimates will continue to drop as a result of this.
?It?s still dry,? McBride said. ?Very good for the potential for harvesting corn in Argentina, but not brining a whole heck of a lot of moisture to that Brazil safrinha crop, so we?re going to continue to see those estimates back off as we go into the next USDA report. That seems to be the trend. That seems to be what everybody thinks, that we?re going to continue to see maybe down closer to 95 or even 90 million tons for their total corn crop for this year.?
McBride also provided a harvest update for Argentina.
?We are moving right along,? McBride said. ?We gained a little bit on the 5-year average last week, so we are at 58% complete on harvest, which is only about 3% behind the 5-year. It?s still about 20% percent behind where they were at this point last year, but they?re moving right along as it?s dried out quite a bit. They?ve been able to get out there and get some work done.?
McBride added some advice for Iowa farmers.
?Keep watching the weather,? McBride said. ?I think the U.S. situation is, obviously, going to be a bigger factor than what Brazil?s is right now with their safrinha crop. That will help us in the long term, but, right now, it?s about where the rain falls and what the USDA tells us about acreage next Wednesday. That?ll be a big report to be watching for.?
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
