Good rainfall in the US and Ukraine and dry weather in China and Australia will have the biggest impact on markets in the coming weeks

This week, rains continued in the Black Sea region, reaching the southwest of the Russian Federation through Ukraine. They replenished moisture reserves in the main wheat and corn growing regions, and only low temperatures, and in some places even frosts, negatively affected the development of crops.

In general, in May, conditions in Ukraine are quite favorable for all crops, so the USDA’s rather optimistic forecasts for the Ukrainian harvest may be confirmed. Due to frosts and dry weather in March and April, part of the winter rapeseed and wheat crops in Ukraine were lost, and farmers are actively re-sowing these areas (and there are no more than 100-200 thousand hectares) with sunflower and corn. Additional waves of rain are forecast in Ukraine and the Russian Federation for the coming week, with a further increase in temperatures to 20-22 ° C, which will accelerate the development of spring crops and increase the potential of winter crops.

Showers and rains continue across much of the Midwest and Plains, accelerating planting and crop development. The excellent planting conditions will allow farmers to increase soybean and corn acreage, especially as trade relations with China improve, adding to optimism about a recovery in exports. Intermittent showers will continue next week, while temperatures will rise, allowing for the completion of corn and soybean planting.

Periodic rainfall in the Canadian prairies is helping to boost planting, which is already outpacing last year’s. Farmers are busy planting in anticipation of more rain next week, even as temperatures drop and frosts are possible in some areas.

Europe is also experiencing heavy, favorable rains, but parts of Germany are caught between fronts covering western and eastern Europe. Scattered rains will continue next week, and will also affect Germany.

Despite intermittent rain in eastern Australia , forecasts predict below-normal rainfall across much of the wheat belt, which will stress wheat and canola crops.

Despite recent rains, dry conditions in central China are also stressing wheat and rapeseed crops that are in the reproductive and bulking stages. This could negatively impact some newly planted corn and soybean areas. Several fronts will pass through over the next two weeks, but with limited rainfall. Northern areas, mainly corn and soybean, are in better condition.

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