The weather in South America still has not changed much, but it’s not much of an impact on the markets anyways since the commodities are focused elsewhere. However, Allendale commodity broker Greg McBride said the markets could be shifting back to looking at the South American weather relatively soon.
Following last week’s WASDE report, the U.S. soybean prices plummeted after seeing the acreage numbers. McBride said there is a silver lining- the U.S. is now at a discount to Brazil for corn and soybeans, which can attract buyers.
In fact, McBride said those prices have already led to increased soybean flash sales.
Farmers down in South America are already looking ahead to the next crop, which is expected to be a bin buster.
If the crop turns out to be as great as expected, McBride said that could have an impact on demand for U.S. grains.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
