South America Calling
Variable Conditions in Brazil
The overall weather patterns remain quite favorable for developing corn and soybeans in most major growing areas of Brazil and Argentina. However, a turn to wet weather in parts of central Argentina has caused some issues with flooding. This will likely not be a major problem in the longer term, although more heavy rains are possible during the next seven days. There are some dryness concerns in southern Buenos Aires which is mostly a double-cropped soybean area following the wheat harvest.
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Hot, dry weather in northeast Brazil (western Bahia) has stressed the soybean crop with some losses expected. However, the ridge causing this weather has promoted very favorable weather over approximately 90% of the soybean belt. This would be analogous to having hot, dry weather in the southeast U.S. while the Midwest has very favorable weather.
Our latest calculation of the sea surface temperature departure in the equatorial eastern pacific stands at plus 0.2 for the month of December. Our data has shown temperature departures very close to normal since May 2016. The talk of a developing La Nina last year has not verified and most government agencies are now backing off of a La Nina event occurring.
Michael Palmerino can be reached at michael.palmerino@dtn.com
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