How much more corn and beans can South America produce? That, of course, depends on the weather.
And favorable South American weather forecasts are supporting estimates for increased crop production in Brazil and Argentina.
Rainfall will return in early January to most of Brazil’s soybean producing areas, predicts Brazil’s Somar Meteorologia weather forecaster, Reuters reported.
Rainy weather this week should benefit those farmers with soybeans ready for harvest, while early January rainfall should help in the development of crops that still need moisture to achieve good yields, the weather forecaster says.
Less than 10 percent of Argentina's and five percent of Brazil's growing region are under “a bit of stress,” according to the marketing firm Allendale, of McHenry, Ill. Good crops in the other regions of both countries should more than offset any production declines that might be seen in dry regions, it says.
Meanwhile, Brazil’s national grain agency, CONAB, estimates an increase in plantings next year for corn and soybeans.
Corn plantings will go up by 7 percent to 16.1 million hectares, while soybean plantings will increase by 2 percent to 33.9 million hectares. However, wheat plantings will remain unchanged at 2.1 million hectares, CONAB estimates.
Producers have finished planting summer corn and soybeans in Rio Grande do Sul state, reports Globo Rural magazine, of Rio de Janeiro.
Nearly half of the soybeans will be sown in January in the Uruguay River coastal region, after the harvest of the first corn crop, it notes.
CONAB also says soybean exports will go up by 10 percent in 2017 to 56.5 million tons, according to the Center for Advanced Studies in Applied Economics (Cepea) at the University of Sao Paulo.
Meanwhile, in northern Argentina alone, wheat plantings are up 28 percent, at 500,000 hectares, over last year, according to the Buenos Aires Grain Exchange.