Since winter, grain traders have been speculating about the soybean crop from South America. Reports have been fairly consistent that the crop from Brazil is large, and yields from Argentina are dismal from the drought.
According to Naomi Blohm, senior market advisor with Stewart-Peterson, this news has been supporting the market “in spite of all this export drama, in spite of all the trade talk.”
Now is the time of year when soybean shipments from the U.S. halt as other countries look to Brazil for their supply.
“It’s seasonally the time of year when it would happen,” she said on AgDay. “Brazil is harvesting everything right now so they have supplies to send out to the world.”
Hear what Blohm thinks could happen if China cancels soybean purchases and her full analysis on Brazil on AgDay above.