Van Ahn and Company CEO Jim Emter thinks Tuesday’s sharply higher soybean market was likely driven by weather. “When you look at the January, February and March outlook, the forecast points to a drier and warmer tendency for southern Brazil and Argentina. Those are the areas lacking rain along the way. There are also northern areas of Brazil that are a little drier, too. It’s hit-and-miss rains.” Emter says most areas of South America will see rains, just not enough to overcome the dryness. Traders are adding weather premium into the market.
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