South American Potential Contributing to Bearish Oilseed Outlook

Planting delays in Brazil due to dry conditions have provided some support to global oilseed markets over the last month or so, but it’s too early to be concerned about dryness.

That’s according to Pedro Dejneka, managing partner with AGR Brasil — a unit of AgResource Company, who shared the South American market outlook at the Cereals North America conference in Winnipeg last week.

“It’s way too early in the season to be concerned,” he says in the above video. “November is really the thick of the (soybean) planting season, and actually Brazil has received fantastic rains here recently. A lot of that concern is overdone.”

Dejneka is forecasting Brazilian soybean production of 96.2mmt and corn production of 74.9mmt if there are no major weather problems.

He also discusses the ongoing expansion of farmland, political issues leading Argentinian farmers to hoard soybeans and how a high U.S. dollar favours South American farmers.

 

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