While the harvest is getting underway in the United States, all attention in South America is on the planting season. This is especially the case in Brazil, where farmers want to get the crop in as soon as possible to receive the record-high prices they were able to secure last spring and summer.
Those record prices that farmers were able to sell soybeans at were a result of the U.S. dollar trading to a record high against the Brazilian real. This made soybeans worth much more than usual, even with depressed soybean futures.
As a result, farmers in Brazil claim they will expand plantings this year and project their soybean crop at a record 133.5 million metric tons. Farmers in Brazil are also projecting a record corn crop this coming year from the same factors, with production estimated at 112.5 million metric tons.
Not only are farmers in Brazil going to expand plantings, but the record income from last year’s...