The Brazilian soybean crop isn’t even in the ground yet, but a market analyst says the slightest possibility of another La Nina weather pattern in Brazil will be a market mover.
Christ Trant with hEDGEpoint Global Markets says despite last year’s La Nina Brazil completed harvest with record high yields and production, but may not get lucky twice if La Nina brings another dry season.
“The global balance sheet needs to have a record Brazil crop.”
The global balance sheet is so tight that any significant loss of yield would send prices sharply higher, limiting end user demand and limiting trade.
