Planting is 30 days behind in Brazil. Ag business consultant Kory Melby says the recent rains have generally been adequate for soybean germination and planting, but dry spots remain. “There is concern in Parana state, because the soybeans are lacking rain and flowering is near. So far, the soybean crop can be fine in Brazil, but the second crop corn is very much at risk going into 2021 with the possible lack of water or a delay in harvest.” An export tax is being considered to determine Chinese demand for Brazil’s grain. “If Brazil comes in short of grain with a weak real, inflationary pressures will force the government to do something to slow down exports. I think that’s at least one year away, but things happen so quickly these days, who knows? It is a possibility if Brazil comes in short.”
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