Rains in Brazil and good weather in Argentina will influence markets next week

In the main grain-producing countries, the weather favors the development of the harvest, and forecasts of so far little rain and a decrease in heat in central Brazil have stopped the speculative growth of soybean quotations.

In the US , dry and warm weather allows to complete the harvesting of soybeans and corn with minimal losses, so production forecasts for these crops have been raised. A cold front will bring light rain and lower temperatures to the Midwest and Great Plains next week. In most regions of winter wheat cultivation, rains will pass, which will improve the condition of the crops on the eve of the expected cooling. In the north, rains will raise water levels in the Mississippi River, which fell to a record low in October, boosting grain shipments to ports by water.

In Brazil , soybean and corn crops in the south are suffering from downpours and floods, while dry and hot weather in the center is exacerbating the drought. Farmers are delaying sowing of soybeans in anticipation of rains, which in the future will lead to a reduction in the area of sowing of second-crop corn. In the state of Mato Grosso, there has been a heat of 35 ^o C for a week, but starting from the weekend there will be scattered rains, which will reduce temperatures and stress for plants, and will also allow to resume sowing of soybeans.

Rains in Argentina are helping to plant soybeans and corn, as well as crop development. For several weeks, heavy rains will fall across the country, which have already restored the soils after a long drought. But in the northwestern regions, the soil moisture deficit still persists.

There are rains throughout the EU , which delay the harvesting of late crops and the sowing of winter crops, but generally contribute to the development of crops. Temperatures and precipitation intensity are expected to drop next week, especially in the northern regions.

The rains that passed in Ukraine made it possible to sow winter wheat, with which 90% of the planned areas are now sown. Frosts will soon stop sowing, but in general the crops are well developed and ready for winter, and light frosts will further harden them.

In the south-west of the Russian Federation, where most winter wheat is grown, heavy rains fell, which, against the background of higher than normal temperatures, contributed to sowing. Local analysts believe that the area sown with winter wheat in the Russian Federation will exceed last year’s figure, so the pressure on global quotations will increase.