AGRIBUSINESS: Analysts Watching South American Weather
In the soybean trade, analysts are closely watching the weather in South America. Rainfall in Brazil and Argentina hasn’t yet lived up to expectations, and if conditions are dry for too long, it could threaten the potentially massive soybean crop there. In growing oilseeds like soybeans, Mother Nature isn’t a uniquely South American problem.
Speaking at a November trade forum in Kansas City, United Soybean Board Past Chairman and Emmetsburg farmer Jim Stillman said American soy output is good, but could be even better.
“Our biggest challenge has been the climate here the past couple of years.” Stillman says if weather improved there would be another problem, “The big issue would be finding greater demand.”
Argentinian and Brazilian soybean production this year is set to increase 11 percent and seven percent respectively. U.S. production is on pace for a seven percent increase, according to USDA’s Foreign Agricultural Service.