The rains have started in Argentina, and the rains are getting weaker in Brazil

Traders are closely watching the weather in South America, where the weather has a significant impact on the soybean and corn markets.

Harvesting has begun in Argentina, and the weather remains unfavorable for crops. In the coming days, there will be showers in the country, especially in the northern regions. But they will not be able to improve the condition of drought-damaged soybean and corn crops. Dry and hot weather will return to the country next week, which will continue to negatively affect the future harvest.

The Buenos Aires Grain Exchange did not cut production forecasts this week, but allowed it to do so if the drought continues next week. Soybeans and corn have begun to be harvested in the country, and yields are still lower than expected.

In Brazil, rainfall is decreasing, which will allow farmers to finish harvesting soybeans and start planting second-crop corn, especially in the southern state of Rio Grande do Sul. Local agencies increased forecasts of soybean harvest in the country to 153.6-155 million tons compared to 129 million tons in the previous season.

Traders are worried about the forecast of dry weather in May in the central regions of Brazil, where precipitation at this time will be very important for corn crops, especially those sown late. In general, May is the driest month in the country.

In the US, heavy rains in the winter wheat growing regions of the Midwest and the Central and Southern Plains pushed prices down to a 2-year low. Corn planting has begun in the southern states, and the rains are helping to produce seedlings. Precipitation is also expected in the arid southwestern regions of the Plains, which will have a favorable effect on crops.

In arid areas of Germany and France, the amount of precipitation increased in March. Heavy rains will pass across Europe next week, which will improve the outlook for winter wheat and canola crops. However, moisture deficit will remain in Italy and Spain, which will negatively affect the harvest if the drought continues.

In the Black Sea region, dry and warm weather will be replaced by showers next week. Soil moisture is generally good, and warm weather favors the development of winter crops. Wheat crops are in good condition, but low moisture reserves in southern Ukraine reduce the potential for wheat and barley harvests, especially given the significant reduction in acreage in the south due to war and adverse weather.