There are reports from South America that the crops are not up to scratch.

The Argentinean corn crop is now forecast to be anywhere from 18 to 23mmt.

The United States Department of Agriculture (USDA) report was still pegging the Argentinean crop at 26mmt.

This sent the values on futures markets down, however, these levels have now been re-found due to the continued negative talk coming out of the area and the fact that farmers there have given up on planting what remaining acres that they still had to sow. These un-sown acres may be transferred to soybeans if conditions improve.

Growers in Argentina believe the key month for their crop is February.

The Argentinean corn crop would normally, ideally be sown in the Southern Hemisphere spring, and it is now summer – so the crop that does go in would not be expected to break any records with yields.

This will be important to Australian growers because it will influence the grain markets, whether it be in warehouse unsold, or sitting in a pool.