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Soybean estimates shrink as Argentina suffers through hot and dry spell

Less than ideal weather continues to plague South American farmers.

Dr. Michael Cordonnier with Soybean and Corn Advisor in Chicago says the current growing seasons in Brazil and Argentina both started dry, then turned wet.  He tells Brownfield while Brazil has stayed in a wetter pattern, the rain has turned off in Argentina.

“They had a very dry February, first half of March has been dry as well. Everybody is lowering their estimates.”

The Buenos Aires Grain Exchange recently lowered its Argentine soybean estimate by two million tons to 44 million.

Cordonnier says there is rain in the forecast and believes South America’s bullish weather has already been priced into the futures markets.

“Which means if the U.S. has any sort of weather concerns this coming summer, the market will be very, very interested.”

He says with short supplies around the world, both North and South America need very big corn and soybean crops to increase the carryover.