South American crops continuing to shrink?

Overnight- Corn and soybean futures were lower while wheat was slightly higher.

There are more reports of shrinking crops in South America

The USDA Attache to Argentina dropped their soybean estimate to 49.5 MMT down from 50.0 MMT. Not a big drop but more could be coming.

AgroConsult dropped their Brazil corn estimate to 123.4 MMT down 5.3 MMT. They are higher than Conab but that is a significant cut.

Some widespread rains across the Cornbelt yesterday put some pressure on prices but the drought monitor will need to show some improvement going forward.

US Dollar has turned back higher with the surprise inflation read yesterday.

We will see how the markets want to finish the week. We backed off corn and soybeans yesterday from the recent highs.

Bottomline

South American weather is taking a toll on their crops, but will it be enough to support prices or motivate the funds to cover short positions? NFC Grain Comments Options -new (21)