Crop prices still high from SA tightness

The poor crops in South America is placing pressure on the US futures prices as importing countries that have strong demand are searching for cheap supply. China, which has been a major importer of SA soybeans and corn is now looking for supply in North America. If you have more immediate need for soybeans and the SA crop will be coming in light relative to earlier expectations, you will buy the old crop in North America (NA) which will lead to tighter supplies. Tighter supply to usage will increase volatility,

Given we are right in the period when crops are planted in NA, there is a high degree of uncertainty on the new crop. That being said, most farmers have already made their crop plans so it is unlikely that there will be a switch from corm to soybeans at this late date. 

The grain markets are global in nature so any failures in the supply chain cause adjustment in prices. Chicago futures prices continue to be a international price and less localized than other futures markets. We are no seeing the impact of supply disruption in the SA market.