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: