Improving weather conditions in South America are putting pressure on crop prices

Heavy rains in Argentina in recent weeks have not only improved the outlook for soybean and corn crops, but have also delayed the sunflower harvest and caused flooding in some regions. In the north of the country, rainfall was low and temperatures exceeded 30 degrees Celsius, increasing stress on crops. Next week, a front will bring cooler and drier conditions to Argentina, while in southern and eastern Brazil, rainfall intensity will increase.

The central regions of Brazil and the state of Mato Grosso are experiencing a rainy season that is delaying the soybean harvest and the planting of the second corn crop. Meanwhile, much drier and warmer weather in other regions has allowed the soybean harvest to be completed and corn planting to be accelerated. Rainfall is expected next week, which should help the corn crop develop.

Fronts brought heavy rainfall to the Midwest and Great Plains last week, which, along with rising temperatures, helped revive winter crop growth. This week, temperatures are expected to drop and precipitation, possibly in the form of snow, is forecast.

Wet weather continues in western and southern Europe, with heavy rains causing flooding in Spain last week. Meanwhile, eastern regions continue to experience a deficit of rainfall that has been observed since autumn. This week, a front will bring rain to much of Europe, including eastern countries, with heavy downpours in key winter crop growing areas.

In Ukraine, a sharp increase in temperature contributes to the restoration of winter crop vegetation, but low moisture reserves may worsen the condition of winter wheat and rapeseed. According to forecasts, scattered rains of 3–10 mm will occur during the days, and by the end of the week, a decrease in temperature to -1…-2°C at night and +5°C during the day and additional precipitation are possible.

The threat of spring drought due to insufficient winter precipitation persists in the south-west of the Russian Federation. In the European part of the Russian Federation, where winter wheat is mainly grown, the total amount of accumulated precipitation remains below average. However, snowfall in February helped protect crops and replenish soil moisture reserves on the eve of spring.