Favorable weather in the US and lack of precipitation in Canada, Europe, Black Sea region and Australia will affect markets this week

In the Midwest and Plains, weather conditions remain favorable for ag crops. The moderate temperatures with occasional showers seen last week will continue to improve the condition of wheat, corn and soybean crops in the coming days, which will put pressure on stock prices.

The Canadian prairies received some rain last week, but it was less than needed. More rain is expected this week, but it will not reach the south and east, adding to concerns about the development of wheat and canola crops and speculative pressure on prices.

Reduced rainfall in southern Brazil has allowed for the acceleration of the second corn harvest, and dry weather this week will help accelerate work and increase corn supplies to the world market, which will continue to put pressure on feed grain prices.

The hot and dry weather of the last two weeks in Europe has helped winter crops dry out and the start of harvest, but has negatively affected late-season crops, especially corn. Starting this weekend, a front will bring rain from the north to the southern regions, where heavy showers will improve the condition of corn, soybeans and sugar beet crops throughout the week.

Last week, the Black Sea region, especially in the southwest of the Russian Federation, received isolated rains, which improved the condition of crops on the eve of the harvest of winter wheat, the yield of which in the Rostov region and Krasnodar Territory is lower than last year, and in the Stavropol Territory – higher. An increase in temperatures to 33-35 ^° C this week will allow to accelerate the harvest of winter crops.

A front moving from northern Europe may bring rain to Ukraine this week, especially to western and central regions, which will promote the development of late crops and slightly delay the start of harvesting of early crops. However, southern regions will remain without precipitation, which will continue to negatively affect the potential for sunflower yields.

According to the Ukrhydrometeorological Center, corn and sunflower crops in Ukraine are generally in good condition, despite the moisture deficit in the southern and eastern regions, however, in some areas of the southern regions, yellowing of leaves of different layers is observed due to a lack of productive moisture in the soil.

Australia’s main winter wheat, barley and rapeseed growing areas remain too dry, but there is hope that fronts will bring rainfall in the coming weeks. This will be critical for crops as wheat and rapeseed enter the start of the growing season next month.

In central China, showers and thunderstorms will continue until at least mid-July, increasing soil moisture and preventing excessive temperatures. This should improve conditions for growing corn and soybeans. In other parts of the country, generally favorable weather conditions remain.

Tags: Black Sea region, USA, crop condition, Australia, Ukraine, EU