Southern Brazil and Argentina dryness continues

Growing regions in southern Brazil and Argentina continue to see rainfall deficit.

Dry weather across some of the major-producing regions in South America is putting upward pressure on corn and soybean prices as we start the new year. Dryness is expected to continue through the short term across southern Brazil and especially in the main-producing states in Argentina. We may see some recovery in rainfall in Brazil as we head into late January and February, however, this would be ill-timed moisture as harvest activities begin and the second corn crop (Safrinha) planting gets underway.

For the seven days ending January 10, 2021, precipitation is forecast to continue to run at a deficit in southern Brazil and growing regions of Argentina. According to data from Weathertrends360, this will be the fourth driest first full week of January in 30 years for Rio Grande do Sul, Brazil, and the third driest in 30 years for Santa Fe, Argentina. The eastern region of Brazil will fare better with wetter-than-normal conditions expected.

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As we head into late January and February 2021, Weathertrends360 expects that wetter weather will return to portions of southern Brazil. While this is good news on the surface, timing will be an issue as early harvest activities begin and planting begins for the Safrinha crop, potentially causing delays. Drier weather is more likely to continue in eastern Argentina.

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