Investors know that South America’s weather is crucial in December

We begin the month of December with significant problems in South America, where dry weather has resulted in a delayed start to planting, and now is affecting the growing season as well.  

One private scout has started to reduce the SAM crop forecast by 1 to 2 million metric tons for both Argentina and Brazil – in both corn and soybeans. Whether or not that will eventually be justified will depend on the next two months’ weather:  December and January are the two rainiest months for SAM, and these important weather months are right upon us.  

SAM weather is still not good, with above-normal temps and below-normal precip still forecast for the next week in this tropical environment, which has its peak of yearly rainfall in Dec and Jan. The eight- to 14-day forecast tries to push back toward normal. There are still signs, though, of below-normal precip…