South American Weather Boosts Market

April 16, 2016 05:00 AM
South American Weather Boosts Market

Weather problems for South American crops gave the corn and soybean markets a boost this week, according to Jerry Gulke, president of the Gulke Group in Chicago.

"Suddenly we began to get information out of South America about the safrinha crop which is the second crop of corn in Brazil and a major crop now,” said Gulke, speaking with Farm Journal Radio’s Pam Fretwell. “It’s dry and hot. I think it’s one of the ten hottest beginnings that we’ve had in that area and one of the driest in the last six years.”

It’s already resulting in lower estimates for Brazilian corn production and higher prices for corn.

That hot and dry weather is also affecting South American soybeans and pushing prices up by 34 cents this week for November contracts.

Meanwhile, in Argentina, rain is preventing crops from being harvested and exported.

“It’s not just about what is going on in Iowa or Illinois,” Gulke said. “There are global implications for everything that happens.”

Listen to his full comments here:

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Spell Check

Chappell, NE
4/16/2016 06:26 PM

  Yes indeed!! Stand back for these BOOSTED markets!

Tombstone Tom
Des Moines , IA
4/16/2016 11:05 AM

  Love how we make up reasons after the fact don't you? Blaming hot dry weather in Brazil is affecting the 2nd corn crop but come on Beans are 85% harvested and a 5% reduction in Argentina beans due to excess rain hardly a reason why beans rallied a buck. Someone else is going on that no one but a select few know about.

simon veldt
seattle, WA
4/17/2016 06:37 PM

  I am from Brazil. South of Brazil was really wet, but with good harvest of beans ending right now. Center west (biggest area) had regular harvest. Northeast was realy dry (nov, dec, feb, march). Brazilian crop down from 106 mm tons to less than 98. Right now really dry in central Brazil corn belt. We already pre- sold to much corn for export (50%), there will not be enough corn for domestical market.