Global production overshadows U.S.
We are starting to see a shift in market focus from the United States to the global side in price discovery. While crop size in the U.S. is an important factor, the potential losses in U.S. yields this year may be made up for globally.

This increase in global production is centered on South America, mainly Brazil. Brazilian farmers are expected to increase their plantings of both corn and soybeans this year, with soybeans increasing by 3% and corn by 2%.

With increased plantings and the return of more normal weather, Brazil is expected to harvest a soybean crop of 155.4 million metric tons this coming year, a 20% increase from this year. Brazil’s corn crop is now estimated at 125.5 million metric tons compared to this year’s 115 million metric...