The forecast is starting to look worse for crops in South America. Soil moisture in Central Argentina, Paraguay and Southern Brazil will be declining in the next seven days with little rain forecast for the following week. Crop potentials are being capped and yields will begin to decline in February if the forecast follow true. As a result soybeans rose to a three week high and corn experienced the longest rally in a year. U.S. soybean and corn inventories on December 1st were the lowest in 9 years according to a U.S. Department of Agriculture report and as of January 8th 42% of the contiguous U.S. was in severe or exceptional drought – more than double the amount from the same date a year before.