Even though harvest is under way in South America, weather remains a very important factor in price discovery.
Crops are still developing in southern Brazil and Argentina, while harvest is taking place in northern Brazil. The fact that planting was delayed to avoid the most extreme weather conditions in South America is also keeping developments a market factor.
We are also seeing more interest on South American weather as the planting of the second corn crop in Brazil, the Safrinha crop, gets under way.
Adverse weather greatly reduced the Safrinha crop in Brazil a year ago as an intense La Nina was taking place.
While there is still a La Nina in place, it isn't as severe. Many farmers in Brazil also opted to plant more soybeans to start the production cycle and double crop with Safrinha rather than planting corn as the first crop.
Thoughts are the Safrinha crop in Brazil will be large enough to put...