SOUTHERN BRAZIL AND ARGENTINA DRYNESS CONTINUES

Dry weather across some of the major-producing regions in South America is putting upward pressure on corn and soybean prices as we start the new year. Dryness is expected to continue through the short term across southern Brazil and especially in the main-producing states in Argentina. We may see some recovery in rainfall in Brazil as we head into late January and February, however, this would be ill-timed moisture as harvest activities begin and the second corn crop (Safrinha) planting gets underway.

For the seven days ending January 10, 2021, precipitation is forecast to continue to run at a deficit in southern Brazil and growing regions of Argentina. According to data from Weathertrends360, this will be the fourth driest first full week of January in 30 years for Rio Grande do Sul, Brazil, and the third driest in 30 years for Santa Fe, Argentina. The eastern region of Brazil will fare better with wetter-than-normal conditions expected.