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Traders eyeing South American planting delays

 

A grain marketer says planting delays in South American could provide price support for farmers.

Angie Setzer  with Michigan-based Citizens Elevator tells Brownfield Brazil’s second crop soybean plantings are trailing last year by about 10 percent, but still on pace with their five year average.

“Last year’s early planting pace allowed for the Brazilian soybeans to enter into the global marketplace a lot earlier than what we would typically see and it also opened the door for what was record second crop corn production.”

She says the slower planting pace has some traders anticipating Brazilian production losses in soybeans as well as second crop corn.  “As expected right now it looks like there’s a 55 to 65 percent chance that La Niña could kick in which traditionally results in some production losses in South America.”

She says a price pop tied to adverse weather is most likely to be seen during January or February and the market should remain range bound until traders have a better idea of production issues, if any.

AUDIO: Interview with Angie Setzer

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