Drought in Ukraine, Brazil and parts of Russia may significantly reduce acreage

Traders’ attention is focused on the weather in Ukraine and southwest Russia, where dry and hot weather is hampering the sowing of winter rapeseed and wheat. In addition, increased heat in central Brazil will not allow for a timely start of soybean planting.

In the black sea countries last week, dry and hot weather continued to reduce the potential of the harvest of soybeans, corn and sunseed, which have already begun to harvest. In some areas there were minor thunderstorms.

In Ukraine, the lack of soil moisture reserves is delaying the sowing of rapeseed. In the next 10-14 days, the heat is expected to reach 25-30°C without precipitation, which will not allow sowing rapeseed in the optimal time and will worsen the condition of early crops.

In the northern and central regions of Brazil, the weather is dry with temperatures above 30-35°C, and no precipitation is expected for 10-14 days. In the second half of September, the rainy season should begin, but the delay in precipitation will not allow to increase the sowing area and get a record soybean crop, which USDA estimates at 169 million tons. In the South of the country, low temperatures have a negative impact on winter wheat crops, especially amid moisture deficit.

In Argentina, frosts and dry weather slow down the development of winter wheat crops. Farmers are starting to sow corn, but lack of rainfall may slow down the work.

In the Midwest and the South and Central Plains of the United States moderate temperatures and periodic precipitation contribute to the development of soybeans and corn, as well as sowing of winter crops.

Last week, there were rains in the prairies of Canada that stopped the harvest of peas, wheat and canola. Next week, temperatures will rise, which will accelerate the harvest.

In most of Europe, especially in the eastern regions, dry and hot weather is affecting the harvest potential of late crops. Next week, the West of the region will cover the front with precipitation, but it is unlikely to reach the Eastern regions.

In Australia, periodic showers contribute to the development of winter wheat, barley and canola.

Tags: EU, drought, Australia, Ukraine, Russia, Brazil