Heatwave in the US and improved weather conditions in the Black Sea region are the main factors that will influence markets in the coming weeks

The main focus of traders is now on weather conditions in Russia, where conditions for spring crops are improving, as well as in the southeastern United States, where the weather is hot, but next week thunderstorms and showers are expected.

Throughout the week in the Northwest Midwest and the Central and Southern plains of the United States there were daily showers and thunderstorms, which contributed to the development of crops. However, in the southeast of the “corn belt” abnormally high temperatures reduced the level of moisture in the soil, creating stress for the germination of spring crops. Next week, the front with thunderstorms will move east, which will lead to lower temperatures and significant showers, and at the end of the week there will be another wave of thunderstorms, which will finally reduce temperatures to normal.

In the United States in early June remained very favorable conditions for all crops, which puts a lot of pressure on the quotes of soybeans, corn and wheat. In the Canadian prairies this week, there were again heavy rains, especially in the south and east, while in the west and north the temperatures dropped slightly. In general, spring wheat and canola are developing in very favorable conditions, and several waves of showers and thunderstorms are also forecast for next week, which will continue to improve the condition of the crops.

In southern Brazil, in the state of Rio Grande do Sul, there is again excessive rainfall, leading to flooding, while the areas of growing the second corn crop in the central part of the country suffer from heat and drought.

Harvesting of the second corn crop is going twice as fast as average due to hot and dry weather, and sowing of winter wheat in the south is delayed due to precipitation.

Throughout Argentina this week, it continued to rain, and next week is expected to see several more waves of precipitation, which accelerates the sowing of winter wheat (65% of the plan has already been sown) and improves crop forecasts to near record levels. Soybean harvesting has been completed, and corn has been harvested on 50% of the area, although there is some delay due to precipitation and high moisture content.

This week in Western and Northern Europe again observed precipitation, and in France and Germany was excessively wet, which negatively affected both the maturing winter wheat and developing corn. Over the weekend, the storm front is expected to move east and south to the Mediterranean Sea, improving moisture reserves for spring crops.

For the next weekend and next week in the Black Sea region, several fronts with precipitation are forecasted, which will not improve the situation with winter crops, which have already begun to be harvested, but will improve moisture reserves for corn, sunflower and soybeans.

In Ukraine, scattered precipitation continues, but moderate temperatures allow spring crops to develop well even with limited rainfall.

In the European and Asian parts of Russia, precipitation ranged from 15 to 100 mm, which improves the harvest potential of spring crops, especially spring wheat in Siberia. This was immediately reflected in the increase in the wheat harvest forecast by local analysts and the fall in wheat prices on world exchanges to almost the levels of two months ago, when Russian agencies sharply reduced their wheat harvest forecasts.

In the growing areas in the East and West of Australia, favorable conditions remain for sowing and development of winter wheat, canola and barley, and further precipitation is expected this week and next week.

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