Favorable Weather Boosts Soybean and Corn Prospects in Brazil and Argentina

For the third consecutive month, favorable weather conditions in Brazil and Argentina have improved prospects for soybean and corn harvests. Rainfall forecasts for the coming weeks are expected to further enhance crop development.

Brazil’s Soybean and Corn Crops Flourish

In Brazil, heavy rains have returned to the central states, supporting the flowering and filling of soybeans, as well as the growth of the first-crop corn. Next week, a cyclone from Argentina will bring additional rainfall to the southern regions, further boosting conditions for crop development.

The soybean harvest is projected to reach 169-172 million tonnes, a significant jump from the 153 million tonnes in MY 2023/24. Harvesting will begin in the second half of January, likely putting downward pressure on global prices.

Argentina’s Balanced Rainfall and Production Forecast

Argentina has experienced scattered showers in the Western and Northern regions this week, while the Central and Southern areas saw less precipitation. However, cool temperatures have helped preserve soil moisture. A new wave of rain is expected next week, improving conditions for corn and soybean crops.

According to the Rosario Grain Exchange:

• Wheat production forecast has been increased to 19,3 million tonnes from the earlier 18,8 million tonnes.
• Soybean production is forecasted at 53-53,5 million tonnes, while corn production remains at 50-51 million tonnes.

Experts believe November and December rains have contributed to the favorable condition of these crops.

Weather Trends in Other Key Regions

1. United States:Snowfall in the Midwest and Plains regions this week improved soil moisture for winter crops. Upcoming frosts are expected to be short-lived and pose no major risks to the crops.
2. Australia:Rainfall in Eastern Australia has benefited sorghum and cotton crops but caused delays in wheat and canola harvesting. Dry weather next week is expected to accelerate harvest activities.
3. Ukraine:Snow and rain have replenished soil moisture reserves across Ukraine. However, much more rainfall is needed in southern and eastern regions, which remain dry since autumn.

Conclusion: Positive view for Global Crops

The favorable weather in Brazil and Argentina points to strong soybean and corn harvests in the coming months. However, increased supply may exert pressure on global prices. Farmers and traders should keep an eye on rainfall trends in key regions like Ukraine and Australia for further market insights.

For buyers, the anticipated increase in harvest may present opportunities to secure commodities at competitive rates in early 2024.





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