The lack of rain and extreme heat in southern Brazil are caused by the La Niña phenomenon, which is affecting the country’s agriculture for the second year in a row. Argentina faces a similar weather pattern, with moisture deficits that will affect 75% of the country’s soybeans next week, según Commodity Weather Group.
This week’s revisions to Brazil’s crop estimates may indicate official cuts next week, when the United States Department of Agriculture (USDA) and Brazil’s Conab will release their forecasts for the Brazilian crop. nation.
Concerns about the South American crop led to a rise in prices in Chicago, where soybean futures rose 13% from December. Lower supply can increase global food inflation.
The intense heat and drought in December in southern Brazil led brokerage StoneX to cut its estimated production 7.7% to 134 million tonnes earlier this week. On Thursday, local consulting firm AgRural said production may be even lower, at 133.4 million tonnes.
The Corn contract registered an increase of 0.5% to US $ 238.87 per ton. Whereas wheat futures changed their trend and ended the week in positive territory: it rose 1.7% to US $ 278.70 per ton.
Source From: Ambito
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