Drought conditions in the regions the sowing of new crop is increasing pressure on the markets

After a dry period in August, when the conditions for filling soybeans and corn were not the most favorable in the United States and the countries of the black sea in September continues the dry period that leads to concern for the winter wheat crop. Dry conditions are observed in Brazil, where since the second half of September to begin sowing soybeans, but the lack of precipitation may lead to delay in sowing.

the focus of traders last week took the weather in the US, where lack of rain has lowered the rating a condition of crops of corn and soybeans, and also leads to a reduction in potential yield. Although in recent weeks, rainfall has increased, and the evaluation of the condition of crops is reduced by only 1%, analysts have been cutting forecasts of production, and today the USDA nadasdy its forecast production.

this week In the Midwest USA were moderate rainfall, which will have a positive impact on ripening corn and soybeans, but next week is not forecast heavy rain, and the temperature will be at the level of 22-25 degrees.

In some northwestern States came cold and was a little snow which caused damage to the crops, since the filling of corn and soybeans is almost over and the crops are ready for harvest.

In the southern plains of the United States were favourable of strong rains this week, which contributes to soil moisture before planting winter wheat, while drier conditions next week will contribute to sowing.

In the canadian prairies, favorable weather and the next week will be warm weather with minimal rainfall that will facilitate the collection of spring wheat and canola.

In the countries of the black sea region started harvesting sunflower in the southern regions there is a low yield, but progress in the North will improve the average yield.

this week on the whole territory of Ukraine and southern Russia have been long-awaited rainfall, although in small numbers, but they lowered the temperature to 20-24 degrees and enhanced moisture supply to crops. For the next 7-10 days is not forecast to rain, which continues to worsen drought conditions before sowing winter wheat.

In Ukraine, winter wheat crops start from the beginning of September, while in Russia this season plan to increase the sowing area of winter wheat to 19 million hectares and as of September 8, 2020 sowing of winter crops already conducted on the area of 6.3 million hectares, which is 14.5% more than at the same date in 2019. Sowing rate significantly ahead of last year's figures, while in some regions the works were carried out and are currently under adverse weather conditions of drought, in particular, it is noted in the Altai, Krasnodar and Stavropol territories, the Volgograd, Omsk and Novosibirsk regions.

the Major regions of soybean production in Brazil for about two weeks and left without rain for the next week are not predicted significant rainfall, which will delay planting of soybeans especially against the background of projections of increase in sowing areas by 5%.

In the Central part of Argentina held showers and rains have improved the moisture of wheat crops, but the rainfall is not enough to improve the condition of crops, the forecasts for next week remain with minimal rainfall that will increase concern about the fate of the wheat harvest.

In Australia remains favourable weather and last week passed though, and enough precipitation, but will improve the condition of crops of wheat, barley and canola. The market expects a substantial increase in forecast production of wheat and barley in Australia from today's USDA report.

Over the past two weeks across the North-East of China went through three typhoons, which caused massive flooding and damaged corn and soybeans in the wind. Rainfall in some places reaches 300 millimeters.

the Leading Region of China for the cultivation of maize was also affected by the floods.