The images below are comparisons over roughly the same growing areas of northeastern Argentina from today and from March 28th taken from the MODIS satellite. You will note much darker areas in the first image from today, which is what water tends to look like, suggesting standing water or very saturated fields where damage to soybean crops are likely to be greatest. There’s also some standing water in the southwest portion of the image but not as much to the northwest. As mentioned in our previous post, Argentina will dry out until rains return Saturday night and Sunday before a much dryer pattern looks to hold for much of next week. But the damage has been done with estimates out of Argentina already dropping production 3.5 to 4.0 mil/tons from around 60 mi/tons to 56 mi/tons, with the potential for additional losses. Grain prices are sharply lower today with better Argentina and Brazil weather patterns coming, but also with a stronger dollar.
