The shortage of rain in major producing countries of grains remains the main factor supporting prices
once in the regions of winter wheat production in the United States and Russia rains, traders drew attention to the shortage of rain in South America, which completed sowing soybean and corn, so the weather greatly depend on the development of crops.
the Dry conditions and strong demand from China led to a sharp growth of prices for main crops, with the result that the global demand declined slightly. Now the weather remains the main factor of support of quotations, primarily soybeans and corn, and vegetable oils.
Brazil completes the sowing of soybeans and corn, however, rainfall remains below normal despite the beginning of the rainy season. Slight rain last week will have a positive impact on crops, however, will not be sufficient for the formation of a record harvest, which experts predict. Next week is expected to warm weather 30-35oC with little precipitation, more powerful in the southern States. In the state of Mato Grosso, which will suffer from the heat, precipitation will be only 5-7 days.
In Argentina, moderate rain accelerates sowing of soybeans and corn, the rate of which is inferior to the average. Next week in the Northern regions will be heavy rains, while in the South and in the center of the precipitation will be minor or moderate. They will improve the moisture of the soil, and the warm weather will contribute to the development of plants.
In the United States almost complete harvesting of late crops. Last week in the Midwest were moderate rains that have improved soil conditions of winter wheat crop, while in the South the States of Colorado, Kansas and Texas crop condition remains poor due to lack of precipitation. In the Northern and southern plains next week will dominate dry weather with low temperatures, so the winter wheat will go into a state of rest. Due to lack of moisture crop condition remains unchanged, that will keep wheat prices at a high level.
In the southern and Central regions of Russia last week the rain passed 30-100% of normal, which favorably affected the winter wheat crops, some of which went into a state of peace and stopped the development. Acreage of winter wheat for harvest in 2021 increased by 1 million hectares due to high prices and favourable conditions during planting.
Condition of winter wheat crops in Ukraine predominantly good, but in the southern regions it is worse than using a precipitation deficit and high temperatures. In the South farmers have reduced the acreage of winter wheat due to the drought, and in the West, the rains did not allow to sow the planned area and detained the harvesting of soybeans and corn.
In Australia, the weather is favorable for harvesting wheat and the crop is expected to be significantly higher than in the previous two seasons, when crops suffered from drought. Data on the wheat crop in Australia will increase the pressure on world wheat prices in December-January.
