Favorable rainfall in the US, Brazil and Australia and heat in Argentina will affect agricultural markets next week

Traders continue to monitor the weather in South America, which is generally conducive to a good harvest, although the heat forecast in Argentina next week is a cause for concern.

In the USA, severe frosts were replaced by a wave of warm air, which brought additional precipitation to all agricultural regions. The Midwest has seen rain this week and will continue into the weekend. Next week, temperatures will exceed normal, which will reduce the thickness of the snow layer.

The Central and Southern Plains will experience warm weather next week with above normal temperatures that will reduce snowpack, particularly in Kansas and Nebraska. In Texas, heavy rains have replenished moisture reserves and improved the condition of winter wheat crops.

In Argentina, in the main regions of soybean and corn cultivation, long rainfall has been replaced by heat of 30-35 ^o C, which will reduce soil moisture reserves. Dry weather will continue for 7-10 days, which will slightly affect the condition of soybean and corn crops, but rains may pass in some regions by the end of next week.

Most of Europe continues to have warm weather with temperatures above normal. In the southern regions, the amount of precipitation is insufficient, so winter wheat crops in Italy and Spain need more moisture in the coming weeks. At the same time, excessive rains are falling in the north of Europe.

In Australia, the main agricultural regions received heavy rains that replenished soil moisture reserves ahead of winter wheat and canola sowing, and in the east – contributed to the development of sorghum and cotton crops. This week, Tropical Cyclone Kirrili will bring heavy rainfall to the eastern and northern areas, while the southern part of the country will see brief rains.

In Ukraine and the south-west of the Russian Federation, warm weather persists with abundant precipitation, which replenishes soil moisture reserves and improves the condition of winter crops. In the Russian Federation, winter wheat was sown on a million hectares more than last year, so production forecasts have been increased, although severe frosts at the beginning of January could have damaged part of the crops.