Trade attention shifting south
Trade attention is starting to shift more toward South America than the United States. This isn't uncommon as South America is starting its harvest season and the U.S. is between crop production seasons.
Over the past few weeks, we have seen mixed weather conditions develop in South America. Early drought conditions in Argentina have been erased as widespread rains moved through the country.
The question now is if these benefited crop development or came too late. Several analysts in Argentina have reduced crop sizes, while the USDA has kept them unchanged. This is especially the case with corn, which suffered from drought while the crop was developing.
The most interest in South America is on Brazil. Conditions in Brazil have been mixed with northern regions seeing adequate precipitation while central and southern regions have been dry. As with Argentina, we have already started to see private forecasters reduce crop size potential due to the drought...