Over the past several years, the commodity market has evolved into a global market. As this has taken place, we have also seen weather become more of a perpetual factor in price discovery. 

A region of the world that is taking high interest when it comes to weather right now is South America. Soils in South America remain very dry, with some regions of Brazil and Argentina claiming soil moisture has been fully depleted of moisture content. We will need to start seeing rains take place if this is going to be corrected prior to the next planting season. The longer it takes for rains to develop, the more concern we will see in the global market as South American crops are counted on to make up for shortfalls in other regions, including the tight soybean situation in the United States. 

A concern with the ongoing drought in South America is the elevated possibility of another La Nina this year. Current models indicate there is a 66% chance of another La Nina forming this fall. If correct,...