The most important driver for grain and soybean markets now is not what happens in North America but what is happening in South America. Brazil and Argentina have become key producers in not only wheat (Argentina) and soybeans (Brazil) but also more recently in corn. Argentina is now a major producer of soybeans with 19 million hectares versus 2 million hectares of corn. The size of the LA agricultural market is growing.
Corn production in Brazil and Argentina now total 90 million metric tonnes versus the US of 312.7 million metric tonnes. LA is still a fraction of the US but the number is growing and becoming the key marginal corn producer. For soybeans Brazil and Argentina produced 127 versus 83 million metric tonnes for the US last year.