As summer progresses in South America, hot and dry conditions in southern Brazil and in Argentina are challenging for corn and soybean crops, and significant moisture relief is not expected beyond early January.
In the week ending Dec. 23, Argentina saw mostly dry conditions, which led to increased crop stress. For 2021/22, growers still need to plant the remaining quarter of the soybean crop and about 40 percent of the corn crop. A lack of soil moisture may prevent planting if conditions do not improve notably during the next month.
In Brazil, rains have been adequate to excessive in the central and northern regions. Areas that are too wet will need to dry down in the coming weeks to prevent yield declines and to aid safrinha corn planting. If fields remain overly saturated into fall, further crop development concerns and harvest delays may occur.
As in parts of Argentina, dryness is a concern in neighboring Paraguay and in southern Brazil, from Parana through Rio Grande do Sul, where many soybean farmers are mulling whether to replant or not to plant at all.
One-week South American precipitation outlook (millimeters)
Posted by: Information Services Our Information Services team assists our clients with understanding commodity and ingredient market dynamics. Using our extensive database of intelligence, we also produce regular commodity and commercial market publications covering supply and demand fundamentals, news alerts on events that shape the markets, and resource guides to give you a complete picture of the industries we monitor.