Don't Rain On Me, Argentina

In February, the USDA lowered its forecast of Argentina’s 2016/17 soybean crop from 57 million metric tons (MMT) to 55.5 MMT. Argentina’s soybean growers have faced a series of torrential rain storms from late 2016 into mid-January. In fact, Santa Fe received roughly 50mm of rainfall within one day in early 2017. This is the second consecutive season in which regional flooding has dampened Argentina’s production potential—actual production was roughly 4 MMT below the initial 2015/16 forecast.