South American planting to begin
Within a few weeks, planting season will be getting under way in South America.
The trade will be paying the most attention to Brazil to see if planting expands as much as expected. Sources from Brazil have already estimated they expect to see soybean plantings expand by roughly 5% in the country this year. This is twice the normal expansion that takes place.
Larger than expected plantings are the result of the record values farmers in Brazil have been receiving for soybeans over the past year. Given currency exchange rates, farmers in Brazil have received as much as $20 per bushel for their soybeans.
Not only has this led to high sales of old-crop soybeans from the country, but for larger than usual new crop selling as well. At the same time, Brazil will need to produce a large crop this year to cover those sales.
It is also quite possible we could see a larger soybean crop out of Brazil even if we don't see elevated plantings.
Given the higher...