Farming in Brazil and Argentina faces challenges from dryness
As the U.S. harvest season reaches its peak, farmers in Brazil and Argentina are grappling with dry weather conditions as they commence their spring planting.
According to Dr. Michael Cordonnier from Soybean and Corn Advisor, soybean planting in Brazil is still in its early stages, with only 2% of soybeans planted across the country.
The southern state of Paraná has seen 13% planted, while the critical state of Mato Grosso has managed only half of 1% due to prolonged dry spells.
Central Brazil is experiencing significant heat and dryness, with the last rainfall recorded in late April. Despite this, Dr. Cordonnier notes that there is still time for planting soybeans, which can occur until mid to late November if conditions improve.
A delay in soybean planting raises serious concerns for Brazil’s second corn crop, which could face planting delays if the soybean schedule is pushed back.
The situation in Argentina appears more precarious, with only 10% of corn planted and no soybeans in the ground yet.
Dryness and above-normal temperatures are widespread, and while some rain is expected, it may not be sufficient to encourage planting during the first phase, which runs through October.
Leaf hopper insects are a growing concern, as their population increases in dry conditions, potentially leading to reduced corn planting overall.
Looking ahead, Dr. Cordonnier believes that grain markets may remain range-bound until more definitive weather-related challenges arise in South America. He also mentions that issues in other countries, such as Russia and Ukraine, could contribute to market fluctuations.
Until the weather forecast becomes clearer, the agricultural markets are likely to experience sideways movement.