Favorable weather in Brazil, Argentina and the US is adding pressure to soybean and corn prices

Over the weekend, the Midwest and the US Plains received favorable precipitation. During the next few days, a strong storm will bring cold weather, thunderstorms and snow, but at the end of the week the air will warm up to 15-20 ^oC, which will allow the sowing of early grains to begin.

In central Brazil, heavy rains last week delayed soybean harvesting, but they benefited second-crop corn plantings, which are nearing completion. At the beginning of the week, the rains will continue, and closer to the weekend, temperatures will rise and the amount of precipitation will decrease. Southern regions of the country will receive more rain this week thanks to a front moving in from Argentina.

Argentina experienced heavy rains last week, which will continue this week. Despite the increase in the intensity of precipitation, the experts of the Rosario Grain Exchange, as a result of the January drought, reduced the forecast of soybean production from 52 to 49.5 million tons and corn – from 59 to 57 million tons, compared to previous estimates.

During the hot period that began on January 17, the moisture reserves in the corn crops decreased significantly, although rains in the second week of February improved the situation somewhat. Early soybean crops during this period were also in a phase of high sensitivity to high temperatures, so they were affected by the heat.

Much of Europe will experience waves of rain this week, replenishing soil moisture reserves ahead of sowing. Rising temperatures will speed up the start of sowing spring crops.

Scattered precipitation fell in Ukraine last week, which improved soil moisture. However, the drop in temperatures to 0-5 ^o C and dry weather this week will delay sowing, although farmers expected an early spring and warmth.

On the Chicago Stock Exchange, soybeans and corn ended the week at 3-year lows amid rain in Argentina and an acceleration of corn planting in Brazil. The arrival on the world market of 200 million tons of soybeans and 58 million tons of corn from Argentina and Brazil will increase the pressure on world prices in March-April.

Tags: soybean, USA, Argentina, corn, Brazil, prices