South America Weather Influences Grain Prices Amid Improved Forecasts
South America Weather Influences Grain Prices Amid Improved Forecasts
US · Published Jan 4, 2026
Steady rains in Brazil and improved forecasts in Argentina are driving a selloff in grain markets.
Improved weather conditions are easing crop stress and enhancing yield potential for corn and soybeans.
Canadian investors are closely watching currency movements, Prairie basis levels, and export competitiveness amid stable global supplies.
South America weather shapes grain prices outlook
Weather conditions in South America are playing a pivotal role in shaping grain prices, with recent rainfall in Brazil and optimistic forecasts for Argentina prompting a market selloff. According to agricultural analysts, these weather patterns are alleviating stress on crops and boosting potential yields, which subsequently lowers risk premiums for corn and soybeans. The United States Department of Agriculture's (USDA) upcoming World Agricultural Supply and Demand Estimates (WASDE) report, scheduled for release on January 12, is anticipated to provide further clarity on supply and demand expectations. Canadian investors are keenly observing currency fluctuations, Prairie basis levels, and export competitiveness, as global supply dynamics appear increasingly stable.
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