When a major exporter has a problem with exportable supplies, other players generally make up the difference. With only two big exporters of soybeans, the implications are huge, and a reduction in exportable supplies by one can significantly affect price.
South American weather continues to be the big market mover. Soybean prices sank last Friday due to forecasts calling for rain in Brazil. Dan Basse of AgResource Company says global weather could continue to be a market catalyst in the weeks ahead.
Let this sink in: One state in Brazil — Mato Grosso — produces the equivalent of Illinois and Iowa’s soybean production combined. Here's a look at South America's growing regions, crop calendar and production capacity.
Most of Brazil’s jump in production is due to a 40% increase in planted acres for soybeans and 33% for corn. Global demand for food will incentivize Brazil to plant even more acres, but there are logistical challenges at play.
