Weather conditions in Argentina and Brazil remain the main factors influencing agricultural markets

Traders’ attention is focused on the weather in South America, so news of heavy downpours in Argentina and more rain in central Brazil halted gains in soybean prices and even turned them lower.

Soybean planting in central Brazil is nearly complete, with scattered rains lowering temperatures and reducing the impact of drought on first-crop soybean and corn crops. As a result of the El Nino phenomenon, the amount of precipitation is much lower than normal, so experts are lowering the harvest forecasts. The rains will continue next week, but will be scattered and light. In the southern state of Rio Grande do Sul, only 50% of planned acreage has been sown due to prolonged rains, but this week the rainfall has eased and farmers have stepped up planting. However, there will be heavy rains again next week.

In the main agrarian regions of Argentina, heavy rainfall favors the development of soybean, corn and sunflower crops. According to the Bage exchange, 43.8% of the planned 17.3 million hectares are sown with soybeans. Starting from the weekend, rains will pass in the country, favorable for sowing and crop development.

In the Midwest and the Great Plains of the USA , where wheat is mainly grown, rains have passed and will continue next week. They will improve the condition of the crops, which are now twice as good as last year. The predicted increase in temperatures against the background of a sufficient amount of moisture will accelerate the development of late crops of winter crops.

In Europe, rains will pass next week, which will delay the sowing of winter wheat in France, but will contribute to the development of crops in the southern regions, especially in Spain, where a lack of moisture was felt.

Rains in the Black Sea region in recent weeks have significantly improved the condition of winter wheat crops, in particular in Ukraine and the south of the Russian Federation. For the Russian Federation, local agencies increased the wheat harvest forecast from 86 to 92 million tons.

In Ukraine, 4.16 million hectares were sown with winter wheat, which corresponds to last year’s level. Good rains have improved the condition of crops, which has increased pressure on wheat prices, which are at their lowest level in the last 3 years.

Tags: EU, USA, crop condition, Argentina, Ukraine, Brazil