South American soybean production is always of interest to U.S. soybean producers as it can often indicate global demand trends. This year, uncertainty with Brazil’s and Argentina’s harvest season will likely add volatility to the soybean market. It is estimated that 15% of Brazil has seen extreme drought conditions and about 40% moderate.

Even amidst lower Argentinian soybean production – also drought-induced – Brazil’s soybean crop will create more competition for U.S. producers. Throughout the next six weeks, much of the country’s soybean crop will be harvested, and the U.S. markets will react through March ahead of the primary U.S. export season.

Read more on global soybean demand and production here.