Marketers are watching South American weather
A marketing expert is keeping a close eye on South American weather and what it might mean for U.S. commodity prices.
John Heinberg with Global Farm Marketing tells Brownfield with less soybean yield and corn acres adjusted downward in the last USDA supply and demand report, the South American soybean crop health and potential yield have his attention. “Currently, Brazil and Argentina’s prices down the road are going to be cheaper than where we are at this time frame, so that’s going to be something I’m very concerned about in terms of where we are in the current old crop status.”
Heinberg says like in the past, Brazil could put downward pressure on the corn market. “We’re going to expect Brazil to flip that soybean crop into a large corn supply also later in the year. We already have enough demand concerns and Brazil can really can kind of undercut the market how they want to in terms of marketing that corn because they want to get that in and out so they have room for the soybeans.”
But he says right now, there is still domestic demand because of the need for feed in the dry western states, but he’s not sure how long that will last.