While weather will continue to determine how the corn harvest plays out this year, three key factors are creating buzz about a potentially record setting corn and soybean crop in Brazil next year: high prices, weaker currency, and more land available to convert to row crops.
For corn, high prices and rising local demand for ethanol and feed have some farmers anticipating an acreage expansion which would potentially boost next year's total corn production by 16-22 MMT.
For soybeans, a forecast 11 MMT production increase due to higher acreage is supported by high prices and expectations of another strong export year to China. These acreage expansions would make it the 14th straight year that acreage has increased in Brazil.
The material provided is for informational purposes and should not be viewed as a recommendation to buy, sell, or hold any commodity contract, investment, or security or to engage in any risk management strategy or transaction. This information is taken from sources which we believe to be reliable but is not guaranteed by us as to accuracy or completeness. The information and opinions represented are those of the author, are subject to change and may be inconsistent with the views of CHS, Inc. or any of its subsidiaries. If applicable, this material should be considered a solicitation by CHS Hedging, LLC and not any other CHS entity. Trading Futures or Options on Futures involves substantial risk of loss and is not suitable for all investors. Past Performance is not indicative of future results.