Rain in the United States and Brazil and drought in Ukraine and Russia remain the main factors of pressure on prices

Active harvesting of late crops in the Northern Hemisphere and obtaining projected yields of soybeans, sunflowers and corn increase pressure on prices, especially given the increase in precipitation in Brazil, where a sharp increase in soybean and corn production is expected this season due to the expansion of sowing areas.

Dry weather in Ukraine, Russia and Argentina negatively affects winter wheat crops and reduces the potential of the future harvest, which has become a new factor in supporting wheat quotes.

In the Midwest of the United States, favorable weather for winter crops remains, although periodic rains slightly delay field work. Warm weather has accelerated corn harvesting and reduced its humidity, and also has a positive effect on winter wheat crops. Over the next few days, the air temperature will drop and rain will fall, but from next week dry and warm weather will return, which will allow you to complete the harvest.

In the areas of the Southern and Northern Plains, heavy rains will also occur, which will improve the moisture reserves on winter crops, but in the western part of the region their amount will be limited. During the week, temperatures are expected to drop to 0 or lower, as well as snow, which will stop the development of plants.

Winter crops in the United States are sown in 70% of the area, compared to 71% on average over 5 years, and moisture reserves are quite good.

In Ukraine and in the south-west of Russia, dry and warm weather Reigns, which contributes to the completion of harvesting and sowing of winter crops. But the lack of precipitation delays the emergence, development and rooting of plants. From Wednesday, the amount of precipitation will increase, which is against the background of temperatures of 12-14 ^OhC will allow you to get seedlings on late crops and improve their condition.

In Russia, as of October 25, 17.5 million hectares or 92% of the planned area were sown with winter crops, which is 0.7 million hectares less than last year.

In Ukraine, as of October 25, 6.5 million hectares were sown with winter crops, or 83% of the planned 7.84 million hectares.

In Argentina, this week there will be dry weather, unfavorable for sowing and development of soybean and corn crops. There will be light precipitation during the week, but it will be insufficient.

Heavy rains continue in the central regions of Brazil, which contribute to the sowing and good development of soybean and corn crops. Precipitation will allow farmers to expand their sowing areas against the background of high world prices for these crops. Dry weather in the South contributes to the ripening of winter wheat, which has already begun to be harvested, as well as the development of soybean and corn crops due to the high moisture reserves obtained in September and early October.

During the week, rain will fall throughout Argentina and Brazil, which will increase pressure on soybean prices, which are already falling against the background of a good harvest in the United States and low demand from China.

Grain Trade

Tags: grain, prices, oilseeds, Black Sea region, USA, crop condition