South America is forecast to transition away from widespread exceptional water deficits in December. However, from September through November exceptional deficits are forecast across northern Brazil along with moderate deficits reaching southward to Rio de Janeiro. Severe to exceptional deficits are forecast near Caracas, Venezuela; western Bolivia; Chile; rivers in southern Argentina; and the Falkland Islands. Surpluses are forecast in eastern Paraguay, and Paraná and Santa Catarina, Brazil. Overall, water deficit conditions will continue to diminish in extent and severity from December through May.