U.S. soybean growers are well aware of how weather markets play out in the U.S. The market typically rallies hard, assuming the worst, then breaks hard when the world doesn't end.
It's getting to be fish-or-cut-bait time in South America too as the calendar turns to February and weather for pod filling becomes more important. Dry areas in Argentina and southern Brazil did get some rain last week, with more forecast this week. Amounts weren't all that impressive, however, and conditions remain touch and go.
So far, the threat helped old crop soybeans avoid their typical break into February. The extent of rains this week could go a long ways towards determining whether recent lows hold or give way on farmer cash flow selling. Traders will also be watching the Argentine farmer protest scheduled for the end of the week, to see if chaos threatens to return to that country.
To read Bryce Knorr's complete weekly soybean review, click HERE.
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