South American Soybean Production – 02/10/2022

The USDA has cut both the Argentine and Brazilian Soybean production forecasts the two months reflecting poor growing conditions during early austral growing season. In the period from 1986 through 2021, USDA has further reduced the Argentine soybean production forecast in seven of the eight years in which the February estimate was at least one million tonnes less than the December estimate.

The situation was less uniform for Brazil with just half the condition years  displaying USDA production estimate declines from February to  July. But the gains in production forecasts  were very small in the conditioned years.

The point is historically the South American soybean crops have not recovered from early season crop damage.