Increased precipitation in the US, Canada and the EU and dry weather in Argentina will affect markets throughout the week

In South America, the weather is dry, which will allow to complete the harvest, so now traders are more closely following the news from Russia, where frosts could damage winter crops.

Last week, frosts down to -5…-9 oC in the central regions of Russia damaged some crops. Initially, it was believed that 20 thousand hectares would have to be reseeded, then this figure increased to 500, and now it has reached 800 thousand hectares or 1% of all areas under spring crops in Russia.

In the coming days in the South of Russia and South-East of Ukraine will be rains, favorable for the development of crops. In general, in Ukraine, the May weather with moderate temperatures is favorable for plant vegetation, despite the lack of precipitation.

According to the Ukrainian Hydrometeorological Center, the slower than in the previous period accumulation of effective heat created favorable conditions for the initial vegetation of plants, and the reserves of productive moisture in most areas were sufficient or optimal, despite the lack of rain. At the same time, the frosts of the last ten days damaged vineyards, fruit, vegetable, melons and other heat-loving crops.

In the Midwest, Central and Southern plains of the United States continue heavy rains, which delay sowing, but contribute to the development of plants, especially in the context of low temperatures. Next week in the “corn belt” will continue showers and thunderstorms, but temperatures will rise to 25-30 ° C, which will have a positive impact on crops.

As of May 12, in the U.S. corn planted 49% of the planned area (54% on average for 5 years), soybeans – 35% (34%), spring wheat – 61% (48%).

In the prairies of Canada next week is expected to be heavy rains, which will replenish moisture reserves, but will delay sowing, the pace of which is inferior to last year due to cold spring weather.

In the southern state of Brazil, Rio Grande do Sul continues to rain, which increases flooding, which can lead to the loss of almost 1 million tons of soybeans. In the coming days, the precipitation will spread to the north, in the regions of growing corn of the second crop. However, in the central state of Mato Grosso it is still very dry, and temperatures exceed 30°C, which negatively affects the development of corn crops. In general, soybeans were harvested on 96% of the country’s area, and in Rio Grande do Sul – only on 79% of the area.

In Argentina, dry and cool weather prevails, which contributes to the intensification of harvesting of soybeans and corn and sowing of winter wheat. During the week in the country was threshed 50% of soybeans and 25% of corn.

Western Europe was again covered by rains. In France and the UK, the weather is excessively wet. Next week, the front will spread to the east of the region, where precipitation is needed. Rains in Spain have improved the forecasts of wheat production.

In most regions of Australia next week will remain dry weather, favorable for sowing winter crops. But in the coming months, the amount of precipitation will increase, as the El Niño phenomenon will be replaced by La Niña.