Agriculture Online Multimedia Editor
It's been awfully dry in South American soybean and corn country. USDA on Tuesday confirmed the drought down south has taken a toll on the region's crops and, in turn, soybean and corn supplies in the world market. Will this translate to a shift in acres in the U.S. this spring?
The soybean crop took the biggest hit in Argentina, where overall production is pegged at 43.8 million tons. That's down 5.7 million tons from a month ago "as drought conditions and heat in the central growing area has resulted in lower projected harvested area and yields," according to Tuesday's USDA World Supply and Demand (WASDE) report.
The Brazilian crop is seen 2 million tons lower at 57 million tons and the crop in Paraguay is seen down 1.6 million tons at 4 million. The net effect on the South American drought, USDA expects, is a reduction of 9.1 million tons to world production, which is now pegged at 224.1 million tons.