(Bloomberg) -- Farmers are holding back grain and soybean sales in a bet that prices will continue rising as dry weather in Brazil and Argentina stokes fears of tight global supplies.

Crop sales by farmers for the current marketing season were below a year ago in the U.S., Brazil and Argentina, which together account for more than three-quarters of global corn and soybean exports, according to Archer-Daniels-Midland Co., one of the world’s biggest agricultural traders. The season runs from September to August.

Harvest estimates for Brazilian crops have been declining, dashing hopes of a supply recovery and relief from food inflation. Farmers in the South American nation have sold 19% of corn they expect to gather in the coming months, down from the five-year average of 29%, according to an ADM presentation.

Recent rains should help limit crop losses in both Brazil and Argentina, Chief Executive Officer Juan Luciano told investors. Dry weather in southern Brazil has cut yield potential while wetter conditions in the north could stall soybean harvesting and delay plantings of the second crop of corn.

“A lot of people are looking at the South American weather,” the CEO said. “South American weather is very strange at the moment.”

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