Brazil drought concerns easing
Brazil drought concerns are easing. And University of Minnesota Extension grain market economist Ed Usset says he’s not surprised.
“I know they’ve had some issues down there, but I do know this, or at least I’ve learned it from meteorologists in the last 15 (to) 20 years. South America, and Brazil in particular, is not as susceptible to drought as, for example, the U.S.”
Brazilian farmers have been waiting on a wetter forecast to begin planting, and the likelihood of moisture the second half of the month has steadily risen.
Usset tells Brownfield the planting delays have been friendly to the market and should extend the export window for U.S. soybeans to China.
“You’re talking a couple of weeks, but a couple of weeks is good. Anything that improves exports is good.”
Dry weather in Brazil has not deterred expectations for a record soybean crop with recent projections remaining above 133 million tons.