Heavy rains in the US, Europe, Ukraine and Argentina, as well as drought in Brazil, will affect markets throughout the week

Traders’ attention is now focused on Argentina, where heavy rains caused by the delay in harvesting can lead to crop losses, as well as the weather in Brazil, which was covered by a wave of heat.

In April, Argentina received more than 200 mm of precipitation, which improved the condition of late soybeans and corn, and replenished moisture reserves ahead of winter wheat sowing. However, the rains delayed the harvest and led to the development of diseases, which could reduce the final yield.

According to the Buenos Aires Grain Exchange (BAGE), as of April 24, corn was harvested on 20% of the area, and soybeans – on 25%, while the average figures are 35% and 50%, respectively. Rains delay the maturation of late crops and lead to the development of diseases. Next week, the country will again receive 10-30 mm of precipitation, but then for 10 days will be dominated by dry weather.

In central Brazil, the dry season started earlier than usual. In the main corn growing regions of the second crop, no precipitation is expected for 10-14 days, while temperatures will exceed 30°C. This will force plants going through the stages of pollination and grain filling to use limited soil moisture, which will reduce the yield potential. In the southern state of Rio Grande do Sul, soybeans and corn are still being harvested, although soybeans have been harvested across the country.

Frosts in the Midwest and the Plains of the United States led to speculative growth of quotations in the beginning of the week, but rising temperatures and periodic showers have accelerated sowing and contribute to the development of crops. the Pace of sowing soybeans and corn ahead of the average, and meteorologists promise during the week warm weather with periodic rainfall.

In the arid regions of the Canadian prairies are expected to showers, which will replenish moisture reserves on the eve of sowing, although it will delay it. In the Eastern regions, moisture reserves are better, and conditions are more favorable for sowing.

In Europe last week it rained, and in some Northern regions there were frosts that did not damage the spring crops. Excessive precipitation in France, the UK and Germany delayed sowing, but improved the condition of winter crops and moisture reserves, so the MARS agency increased its yield forecasts for the new season.

According to the Ukrainian Hydrometeorological Center, conditions are favorable for sowing in most regions of Ukraine. Precipitation replenished productive moisture reserves in all soil layers, but in the south of Dnipropetrovska and Kherson regions, the amount of precipitation was below normal, and moisture reserves decreased to insufficient. In the second decade of April, conditions for sowing and plant development were satisfactory, but due to excessively high temperatures in the second half of March and April, the development of early grains is almost a month ahead of average.

As of April 25, 45.5% of Ukraine’s spring crops were planted, and dry and warm weather next week will allow farmers to accelerate sowing and complete it in the optimal time frame.

Tags: Brazil, EU, Canada, USA, Argentina