Good rainfall in Brazil and dry weather in Argentina will be the main factors influencing prices in the coming weeks

Traders continue to closely monitor the weather in South America, which affects the formation of a good soybean and corn harvest.

Last week, almost all of Brazil, especially the drier south, received heavy rainfall, which continued to improve the condition of soybean and corn crops. Rainfall in east-central Brazil was slightly lower, but heavy rains are expected across the entire soybean growing region of Brazil next week, which will be very important for the pod filling stage. Early harvest is expected to begin in January, and local analysts continue to raise soybean crop forecasts on the back of favorable weather.

The northern regions of Argentina also received good rainfall last week, while the central and southern regions remain drier, although soil moisture is still favorable across much of the country.

Scattered showers are forecast in the northern part of the country this week, but drier and hotter weather in central and southern Argentina will increase stress on corn and soybean crops, which could reduce yield potential.

The warm, rainy weather that blanketed the Midwest and Plains of the United States last week is giving way to cold weather with frost, winds and snow, so analysts will be closely monitoring the level of snow that will cover winter wheat crops ahead of the drop in temperatures in January.

This week’s rains in the Mediterranean have been beneficial for the growing winter wheat crop. Soil moisture is favourable for dormant winter wheat crops in most of the rest of Europe. Much lighter rains are forecast next week, mainly in the north-east.

Dry and frosty weather prevailed in Ukraine last week, which helped complete the harvesting of sunflower, soybeans, and corn. However, about 10% of the corn crop still remains unthreshed.

Over the weekend, blizzards with snow and a drop in temperatures swept across Ukraine, which will stop harvesting, but will increase the snow cover of the fields before frosts, which can reach 10-15 degrees at night. However, a sharp increase in temperatures above zero is expected by the end of the week, which will lead to melting of the snow cover and will not allow further harvesting of corn.

The Australian wheat and canola harvest is nearing completion under favorable weather conditions, confirming the high yields forecast. Meanwhile, cotton and sorghum planting is almost complete and many areas are experiencing drought stress.

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