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La Nina effects on Brazil, Argentina could increase demand for U.S. corn
An atmospheric scientist says a cool and dry weather pattern is affecting the South American planting season and it could increase demand for U.S. corn.
“That could be very supportive to prices overall as we move through out winter and their summer.” Eric Snodgrass with Nutrien Ag Solutions says.
He says La Nina is in effect for Brazil and Argentina, which brings below-normal temperatures and rainfall to the country’s’ growing seasons.
He tells Brownfield drought in Argentina and Brazil means both countries won’t be able to produce its maximum crop size. “When we see increases in acreage, when we see increases in production any weather event that could slow down that total production number just affects the global balance sheet of how much grain is out there to be traded and sold.”
In September, Brazil’s equivalent of the USDA lowered its second corn crop production 1.4% on the month and nearly 21 percent on the year.
He says it’s likely U.S. growers won’t see changes in commodity prices until production reports are released from either country or USDA
