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

In Argentina, harvesting has begun, and the weather remains unfavorable for crops. In the coming days, the country will have showers, especially in the northern regions. But they will not improve the condition of drought-damaged soybeans and corn.  Next week, dry and hot weather will return to the country, which will continue to negatively affect the future harvest.

The Buenos Aires Grain Exchange did not lower its production forecasts this week, but allowed it to happen if the drought continues next week. The country began to harvest soybeans and corn, and the yield is still lower than expected.

In Brazil, the amount of precipitation is decreasing, allowing farmers to complete soybean harvesting and start sowing second-crop corn, especially in the southern state of Rio Grande do Sul. Local agencies have increased forecasts for the soybean crop in the country to 153.6-155 million tons compared to 129 million tons in the previous season.

Traders are concerned about forecasts 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 in late terms. May, in general, is the driest month in the country.

Heavy rainfall in US led to a price decline

Heavy rainfall in the winter wheat-growing regions of the Midwest and the Central and Southern Plains led to a decline in prices to a 2-year low In the United States.  In the southern states, corn sowing has begun, and rains contribute to the emergence of seedlings. Precipitation is also expected, which will favorably affect crops, in the arid southwestern regions of the plains.

In arid regions of Germany and France, rainfall increased in March. Next week, heavy rains will occur throughout Europe, which will improve the prospects for the harvest of winter wheat and rapeseed. However, in Italy and Spain, the lack of moisture will remain, which will negatively affect the crop 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 is conducive to the development of winter crops. Wheat crops are in good condition, but low moisture reserves in southern Ukraine reduce the potential of wheat and barley harvests, especially given the significant reduction in sowing areas in the south due to the invasion and adverse weather.

Source: Graintrade.com.ua