Tracking the South American market is big business these days, especially for soybean producers. And during September and into early early October planting in the key soybean-growing areas of Brazil took a hit due to heavy rains caused by the La Nina weather pattern.
Experienced weather watchers know that La Nina is traditionally a dry weather pattern for the region, but that hasn't been the case for 2010-2011 planting. This wet weather is one of the reasons soybean trade in the U.S. market has pushed higher.
Dow Jones reports that the private weather service Somar says weather concerns for the region have vanished. Based on that there could be downward pressure on U.S. prices if Brazil catches up with planting.
In the planting race farmers in Mato Grosso are usually first into the fields, but this year neighboring Parana managed to plant first. How that may impact the soybean market will be seen early next spring in the U.S.