With the recent events, agencies and experts have reduced the expectations for this year’s harvest in Brazil. USDA reported a decrease of around 330 million bushels of soybeans in the projection of Brazilian production.

This year's production is projected to be lower than last year, despite a 3.59% in crop area.

The seeding process this year started out smoothly and with optimism, with most of the soybean planted within the window planned. However, the extreme weather, with severe droughts in the South and intense rain showers in the Midwest, the perspectives of another record season have lowered.

It’s not over yet

There has been a shift in the pacific winds, leaving rains concentrated in Argentina. This change is deviating the cold fronts from Brazil, maintaining the heat waves. Expect an increase in temperatures in the coming weeks, especially in southern Brazil. 

This condition aggravates even more the conditions of corn and soybean crops in the mid-south of the country. On one hand, the lack of product is an issue, but on the other hand, the price of soybeans is expected to hold up.

The opinions of the author are not necessarily those of Farm Futures or Farm Progress.