World weather patterns causing severe drought in Argentina, impacting soybean production.
The news of the drought in Argentina and the possible impact on the soybean harvest saw the price of soy increase by 2% in the United States on Thursday.
Wheat and corn struggled before ending weak on the market, while the soy market was in a bullish mood, with concerns over the vast pre-orders on the books from China, the worlds biggest buyer of soy.
Argentina is also the world's second largest exporter of corn after the United States. The whole problem depends on how hard Argentina is hit by the current world weather patterns. The state of Chaco in Argentina declared a state of emergency on Friday, as a direct result of the drought and the effect on farmers.
There have been severe losses in the production of sunflower, and the cattle ranching business as there is no summer grass. Meanwhile the government has issued a statement showing inflation at 7.5%, while the editorials of every daily newspaper are claiming the figure is close to 35%.
Farm unions have taken to the roads for the day. 2,500 farmers workers have blocked Route 9 in Buenos Aires, while their masters are enjoying the sun and sand at Mar del Plata. The farm workers joined forces with the metal workers union to protest about inflation and unemployment, they claim is a result of government policy.