From Farm Futures:
South America’s weather problems are the number one concern for corn, soybean and wheat traders longer-term. USDA’s bearish crop report on Monday essentially meant that we could delay a battle for acres for a year, if South America would come through with a good crop. However, the current drought has already significantly cut corn production for our largest export competitor and it’s beginning to hurt soybean production. The duration and intensity of the current South American drought will shape the scope of the U.S. acreage battle as spring approaches.
