South American countries typically account for almost 55 percent of the world’s soybean supply.
A University of Illinois Farmdoc Daily report says South America’s top soybean producers are experiencing varying harvest expectations this crop season.
Brazil looks to be on the verge of breaking a record in soybean production.
However, Argentina will have its worst harvest in more than 20 years. The contrast in harvest predictions is due to La Niña.
Overall, South America’s soybean production is still expected to bypass the previous year, but to a smaller extent than first thought.
The consequences of a larger soybean crop in South America, combined with the potential for a larger U.S. soybean crop this fall, could push prices lower.
The effects of La Niña this season were more concentrated in southern South America, affecting extreme southern Brazil, Argentina, and Uruguay. Paraguay, the world’s fourth-largest soybean exporter, was spared from the drought’s effects.