Prospects for freshly planted corn and soybeans in Brazil and Argentina might rise after the countries endured several weeks-of drought-like conditions, Bloomberg reports.
Three-quarters of Brazilian growing regions received more than two inches of rain during the past 72 hours while one-fifth of Argentine crops took on two inches of rain over the weekend, according to a report by the Commodity Weather Group. Forecasts indicate additional rain as the week continues.
"There was a little more rain in South America than expected," Jerry Gidel, a grain analyst for North American Risk Management Services Inc. in Chicago. "Brazil is in great shape, but Argentina will need more rain than is forecast this week to eliminate concerns about dry soils."
Corn futures for March delivery fell 1.4 percent to $5.6575 per bushel after 10 a.m. on the Chicago Board of trade. Soybeans for January delivery fell 0.12 cents to $12.8825 per bushel.
After the U.S., Argentina and Brazil are the world's largest exporters of corn and soybeans. The U.S.' two biggest crops are corn and soybeans, whose industries last year were worth nearly $49 and $32 billion, according to government data.
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