Brazil receives rain, but it may be temporary

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Brazil receives rain, but it may be temporary

Rains have been falling in some of the driest areas of Brazil, including the major soybean producing state of Mato Grosso, and are expected to continue for the next few days.

But extended forecasts indicate a return to hot and dry conditions in southern Brazil and Argentina, starting in mid-December and continuing well into January.

Brazil is forecast to produce close to 133 million metric tons of soybeans in 2020-21, which would be a new record. However, some private analysts have lowered their estimates to 132 million or less based on the delayed planting of the soybean crop and dry weather concerns.

Brazilian-based consulting firm AgRural is still projecting a crop of 132.2 million metric tons.