Drought in Brazil remains the main factor affecting grain markets

< span style="font-size:14px;">the drought in the central regions of Brazil, where second-crop corn is grown, which accounts for 2/3 of the total corn crop in the country, is increasing and is becoming the main factor influencing the corn and wheat markets.

< span style="font-size:14px;" > usually the rainy season in the region ends at the end of April, and in May the lowest amount of precipitation falls in a year. But this year in the states of Mato Grosso and Paraná, there is no rain for more than two weeks and will not be for the next 7-10 days, while the heat reaches 28-30 < sup > O < / sup > C.< / span> < / p>

< span style="font-size:14px;" > according to USDA estimates, soil moisture on second – crop corn crops in Brazil is in the range of 1% (insufficient) - 50% (adequate). The states most affected are Mato Grosso do Sul, Goias, Paraná and Sao Paulo. Forecasts for the second corn harvest were reduced from 80 to 65-70 million tons, but they can reduce even more if there is no rain.

< span style = "font-size:14px;" >starting from April 15, corn futures on the Chicago Stock Exchange rose by 25%, in particular, July - to 2 283.2/ton, December – to<248.4/ton. < / span> < / p>

< span style="font-size:14px;" > in addition to the drought in Brazil, traders are concerned about the lack of precipitation in the northern plains of the United States. There, cold and dry weather delays sowing. Farmers are not happy even with the forecasts of light precipitation for the coming days, as a sharp increase in temperature to 22-24 ^OC at the end of next week will further increase the dry phenomena on spring crops. 

< span style="font-size:14px;">in the Southern Plains, increased precipitation has improved wheat crops, but southwestern states, especially Texas, are still suffering from a lack of moisture.

< span style="font-size:14px;" > the weather in the US corn belt is improving and contributes to the acceleration of sowing, the pace of which is ahead of last year's and the average 5-year, which against the background of high prices can lead to an increase in acreage.

< span style="font-size:14px;" > in the Midwest of the United States, warm weather will prevail for 7-8 days with periodic moderate rains, most of which will pass in the center and south of the region, while in the North precipitation will be less and temperatures will be lower.

< span style="font-size:14px;" > in Canada, in agricultural regions, dry weather with temperatures below normal delays sowing, but warming and rain next week will speed it up.

< span style="font-size:14px;" > in Argentina, during the decade, warm weather with light precipitation will allow us to accelerate the harvesting of soybeans and corn and increase the supply of corn to the world market to meet the high demand.

< span style="font-size:14px;" > in France, which has suffered the most drought in Europe in recent weeks, there will be good rains next week, which will improve the condition of crops.

< span style="font-size:14px;" > in Ukraine and Russia, warm weather with periodic rains contributes to the development of crops and allows us to hope for good yields of all crops.