Heavy rainfall in South America improves prospects for soybeans and corn

In December and January, traders’ attention will be focused on the weather in South America, where the weather conditions are still favorable for sowing and germination, which increases pressure on world prices.

Heavy rains in almost all of Brazil allowed farmers to complete the sowing of soybeans in the optimal time. In the coming days, additional rains will continue to improve the condition of crops, but in the southern regions of heavy rains can lead to flooding.

In Argentina, in the areas of cultivation of soybeans and corn, the front brought heavy rains, which will continue next week. Soybeans in the country planted 35% of the area, and favorable weather for sowing can lead to an increase in acreage, as in Brazil.

It is expected that in the North precipitation will be stronger, while in the Central and southern regions will be a moisture deficit. The strengthening of La Niña could lead to heat and drought at the end of the season, so the more precipitation that falls now, the higher the chances of a good harvest.

In the Midwest, Central and Southern plains of the United States, the cyclone this week brought cold air with rain and snow, which will replenish soil moisture and protect crops with a layer of snow before the temperature drops next week. The rains increased the water level in the Mississippi, which allowed to increase the export of grain by barge.

In Europe next week will be heavy precipitation, which will affect the South-East, where there was a moisture deficit. This will improve the condition of crops and may lead to an increase in winter crops sowing areas amid warm autumn weather.

Powerful rains in the East of Australia delayed the harvest of winter wheat and canola, but contribute to the sowing and rooting of sorghum and cotton. Dry weather next week will accelerate the harvest.

In Ukraine, there was a slight precipitation in the form of snow and rain, but their amount was not enough to accumulate moisture reserves for the next season. After dropping to -2…-5 oC, temperatures will rise to 0 oC and above next week, but no significant precipitation is expected.

Almost the entire territory of the Russian Federation is experiencing above-normal temperatures and a sufficient layer of snow cover has formed, except for the south of the Central Federal District and the southwest of the Volga Federal District.

Tags: Ukraine, Brazil, EU, USA, crop condition, Argentina