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Cordonnier: lack of South America weather problems keeps grain prices in check

An analyst says a weather scare in South America could help improve U.S. grain prices, but so far, there aren’t any concerns.

Michael Cordonnier with Soybean and Corn Advisor says Brazil’s soybeans are expected to be record-large, and it’s unclear what will happen with corn.

“A lot of farmers have already said they’re going to miss the ideal planting window for the second corn crop, which in central Brazil closes about the third week of February. And my estimate is a good 30 percent of second corn crop, called the Safrinha, is going to be planted later than desired.”

Cordonnier says the corn and soybeans in Argentina are doing better than expected.

“You know, for the last couple of months, all the meteorologists have said, we have a La Nina kicking in, it’s going to be weak and short lived. Usually, a La Nina results in hotter than normal and drier than normal conditions.”

But he says it hasn’t happened yet and South America is still on pace to raise good corn and soybeans this year.