Traders are shifting their focus to South American corn and soybean production. Loewen and Associates President Pete Loewen expects increasing production from Argentina and Brazil. “The start to their growing season seemed to be better this year than last year. It’s been drier in southern Brazil lately, but I don’t think their crop potential is declining.” Brazil’s acreage increase will offset any reduction in yields. “It doesn’t feel that long ago where combined, Argentina and Brazil’s soybean production totaled 100 million metric tons. Now, it’s almost double that. It’s pretty insane what they’ve done from an increased acreage standpoint, but productivity, too.”
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