Weather Causes Record Losses in South America Corn, Soybeans

May 10, 2016 05:00 PM
Weather Causes Record Losses in South America Corn, Soybeans

Extreme weather has caused record losses in South American corn and soybeans, according to Brazilian and Argentine government grain agencies.

In Brazil, expected corn production was slashed 4.7 MT, from 84.7 MMT to 80 MMT by Conab, the government grain agency. Soybean production estimates also were cut from 99 MMT to 96.9 MMT.

In Argentina, a record 1.6 million hectares have been lost because of a combination of rain, hail and drought, the Buenos Aires Grain Exchange said.  Production was forecast at 55 MMT, according to a May 6 report from Argentine agency.

The adverse weather could have a significant impact on global supplies because Argentina is the world’s top exporter of soybean meal and Brazil is a major corn and soybean producer.

The decrease in South American crops could impact the market, but “it depends on how much is (already) dialed in,” said Don Roose of U.S. Commodities. “It’s not a shocker,” he said. It might take a drought in the Midwest to move markets, he added.

“We’ve got the cheapest corn in the world. We’ve got China taking advantage of prices and selling off reserve stocks,” he said.

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Spell Check

cleveland, OH
5/10/2016 08:20 PM

  both crops out of s. America are the same size or bigger than last year so whats the panic about.

Vancouver, WA
12/18/2016 01:43 PM

  I'm actually in Vancouver, BC...there's no provision for entering anyhting but a US location. I believe this story...I'm more worried that we are not being told, or warned about it though.

Cambridge, WI
5/10/2016 08:03 PM

  According to Mr. Roose in his statement that the record losses in Argentina and Brazil are not "a shocker" give me pause to think this man may be playing playing me for a fool as well as my fellow producer's in this business we call production agriculture. The truth be told I will be I will be responsible for finding accurate statistics when marketing my grain instead of half truths. Record losses equal record losses.