Favorable rainfall in major grain-exporting countries improves harvest prospects and lowers stock prices

Good productive rainfall occurred in late May and early June in almost all regions of the United States, Canada, Europe, and Australia. Stock market quotes for grain and oilseed crops lost speculative support and began to decline.

Drought-stricken Midwest regions have seen showers and thunderstorms this week, improving the health of corn and soybean crops. In some states, such as Missouri, rainfall was excessive, leading to flooding in fields.

July soybean futures on the Chicago SWOT fell by 5.8% during the week to $415/t (-7% for the month).

Rain fronts have moved from the Northern to the Central and Southern Plains of the United States, improving the spring wheat crop. Forecasts call for additional showers across much of the region over the next week.

July spring wheat futures on the Minneapolis exchange fell 10% to $234.8/t during the week, and durum wheat in Kansas fell 7.3% to $227.8/t.

Canada’s prairies have been enjoying favorable planting weather with occasional showers this week, as farmers are finishing up planting canola and spring crops. Heavy rains are expected to hit the agricultural regions starting this weekend, providing good moisture reserves and helping crops develop. However, some provinces, notably Alberta, will not have time to finish planting by then.

July canola futures on the Winnipeg Exchange fell 1.8% yesterday to CAD 784/t.

Recently, most of Brazil has been experiencing dry weather, which is unfavorable for corn and wheat crops, but next week, precipitation is expected even in central regions and in the state of Mato Grosso, which will have a positive impact on corn crops after a period of drought in May.

July corn futures on the Chicago Board of Trade fell 7% during the week to $167.3/t.

Rain is expected across Europe early next week, including Ukraine, helping to build up moisture, especially after hot and dry conditions last week stressed crops in western Europe.

Cyclones moving from Europe will bring showers to Ukraine next week, and air temperatures will rise, which will positively affect crops after a rather wet and cool spring.

Another front has passed through eastern Australia this week, and rains will continue next week, helping winter wheat and canola to thrive.

Most parts of China have good soil moisture, but some areas in the south have received too much rain for winter crops, so the winter wheat harvest has begun under unfavorable conditions. Additional rains are expected in the near future in the main corn and soybean growing areas.