Dry weather worsens the condition of crops in Ukraine, Russia and Argentina

In the main grain – producing countries of the Northern Hemisphere ,dry weather remains with light precipitation, which contributes to the harvesting of late crops. However, a lack of moisture can significantly worsen the condition of winter wheat crops. Increased corn harvesting increases pressure on prices, while wheat prices are not falling, as they have received support from a weather factor that will affect the future harvest. Brazil, thanks to heavy precipitation, accelerates the sowing of soybeans and corn, which puts pressure on prices. In Argentina, the lack of precipitation worsens the condition of winter wheat crops and delays the sowing of soybeans and corn.

In the” corn belt ” of the United States, dry and warm weather reigns with periodic rains, which contributes to the harvesting of soybeans and corn, as well as maintains soil moisture reserves on winter crops. Over the next 7-10 days, precipitation will increase and temperatures will decrease, but later dry and warm weather will return again.

During the week, rain will fall on the northern and Southern Plains, which will replenish the moisture reserves on winter crops and not delay harvesting too much. For several days, the temperature will be lower than normal, and from next week it will exceed the norm.

As of October 17, corn in the United States is harvested on 52% of the area (41% on average over 5 years), soybeans – on 60% (55%), and winter wheat is sown on 70% of the area (71%).

In Brazil, especially in the central states, there will be heavy rains for 7-10 days, which will contribute to the development of soybean and corn crops. In the south of the country, precipitation will be less, but earlier there was a significant amount of precipitation, which will accelerate the maturation of winter wheat crops. As of October 16, 24% of the planned areas were sown in the country (8% last year), including corn – 32% (34%), and wheat was harvested on 38% of the areas (33% last year).

In Argentina, dry weather worsens the condition of soybean and corn crops and the potential of winter wheat crops. Next week there will be light rains, which will not be able to improve the condition of crops.

In Ukraine and central Russia, precipitation fell last week, but in general, dry weather prevails in the Black Sea region, which contributes to the harvesting of late crops. As of October 21, 85% of sunflower, 70% of soybeans and 40% of corn were harvested in Russia. As of October 13, 73% of sunflower, 61% of soybeans and 22% of corn crops were threshed in Ukraine. Winter crops in Russia are sown 88% of the planned areas or 16.8 million hectares, in Ukraine – 72% or 5.7 million hectares. In the next 3-5 days, temperatures and frosts are expected to decrease, and then dry and warm weather will be established again, which will speed up corn harvesting.

Winter wheat crops in Ukraine and Russia will suffer from drought for 2-3 weeks, which will support prices, but lower corn prices under the pressure of accelerating harvesting will soon affect the wheat market.

Graintrade

Tags: Ukraine