Rainfall forecasts in the US, Argentina, Brazil and Ukraine reduce speculative impact on wheat and corn prices

The market expects that the rainfall forecast in the US, Argentina, Brazil and Ukraine will improve the condition of crops, which will accelerate sales of the old crop and reduce the speculative impact on wheat and corn prices.

Rising temperatures in Ukraine have resumed winter vegetation and allowed the sowing of early spring crops to begin. As of March 20, 4% of the planned area (5.764 million hectares) or 250.4 thousand hectares had been sown with grain and leguminous crops, including spring wheat – 36.7 thousand hectares or 16% of the forecast, spring barley – 133.5 thousand hectares or 17% of the forecast, peas – 29.2 thousand hectares or 26%, oats – 9.7 thousand hectares or 10%.

Heavy rains have been falling in most regions of Brazil for the past week and are expected to continue for another 7 days. They are slightly delaying the soybean harvest but are helping the second crop of corn to develop.

Next week, a new front will bring another wave of precipitation to Argentina and southern Brazil, favorable for late soybean and corn crops, especially in arid regions.

In the US, major winter wheat growing areas also received rain last week, replenishing moisture reserves as temperatures rose and vegetation resumed. In the arid Midwest, rains washed away soil ahead of the start of field work and planting. Next week, a new wave of precipitation will fall on the Midwest and Plains of the US, reaching the southwestern regions, where moisture deficits persist.

In southwestern Europe , particularly in Spain, heavy rainfall has caused flooding. Next week, the cyclone will spread eastward, bringing heavy rains across Europe, which will help improve the condition of crops and the sowing of spring crops.