USDA crop supply and demand reports are expected to show tighter

United States : We still have weather concerns about South America, and their forecast doesn’t seem to be getting better for the areas that need to get better,” said Ted Seifried.

Weather forecasts show continued dryness across crop-growing regions of Argentina and Brazil for the coming two weeks, reinforcing recent reduced crop estimates by private consultants.

This week’s USDA crop supply and demand reports are also expected to show tighter grain and oilseed supplies and smaller crops in Brazil and Argentina.

Argentina’s soybean crop faces a make-or-break period ahead as the risk of drought creeps back, with rainfall “erratic” and heavy rain looking unlikely until the second half of February, the Rosario grains exchange said.

South American weather concerns are driving export business to the United States at a time when export demand generally shifts to Brazil and Argentina.

Private exporters reported the sale of 507,000 tonnes of soybeans to unknown destinations, Monday morning, the USDA said.