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Dry parts of Brazil have attention of the market
The market is watching an increasingly dry situation in South America.
Kluis Commodities president Al Kluis tells Brownfield up to 30 percent of some of the main corn and soybean areas of central Brazil have turned very dry.
“And that’s the first hint we’ve had of any crop production problems in South America. If that continues, it’s something I’ll be watching very carefully.”
University of Minnesota grain market economist Ed Usset says he’s hearing the same thing.
“The possibility of a supply-led rally in soybeans and corn is an ever-present possibility, but I’m not in the mode of pushing the panic button just yet. I think they’re going to do okay down there.”
The USDA recently increased its soybean estimate for South America from 367 million tons to 369 million, with a 1.5 million ton increase for Brazil.
Al Kluis audio:
Ed Usset audio:
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