We are starting to see a division in the market between North and South America. In North America, all attention is now on demand and how end users are consuming the newly harvested crop.

More importantly, the trade is looking at indications of the current consumption pace to continue, mainly on soybeans. In South America, nearly all interest is on production and how this year’s crops are developing.

Demand for U.S. soybeans remains high as buyers continue to secure coverage given a lack of movement out of South America. Labor issues in Argentina suspended that country’s exports and brought additional buyers to the U.S. 

Harvest is underway in Brazil, but we may not see exports start as soon as usual. Brazil depleted its soybean reserves last year and now needs to build them back up. Typically, Brazil starts to export soybeans in early February, but it may be closer to March before we see much competition this year.

This is making it hard to ration U.S. soybeans as importers have no other...