Grain markets remain under pressure from dry weather in key producing countries

the Main weather factors influencing the markets this week began with dry weather in the U.S. and Brazil and forecast precipitation in Ukraine and Russia.

In the Midwest USA in the next two weeks will prevail dry and warm weather, which will facilitate the collection of soybeans and corn, leading to a sharp increase in supply of these crops on the physical market and will increase pressure on prices. Thanks to early sowing and dry weather in August the rate of harvest significantly higher than last year.

On the Southern and Northern Plains of the United States in the next 7-10 days will be warm and dry, which will facilitate the collection of late crops and sowing winter wheat. Winter crops are increasingly experiencing a shortage of moisture, but this does not bother traders.

In the main agricultural provinces of Canada within 7-10 days will remain cold, dry weather with little rainfall, which allows to complete the cleaning of canola and spring wheat without losses from rains and frosts, the usual for this time of year.

throughout Europe in the next 7-10 days will be heavy rainfall, which will improve the soil supply with moisture, accelerate germination of winter crops and improve the condition of the crops, which will reduce the price of rapeseed. Caused by the rains delay corn harvesting will not significantly affect markets.

throughout the territory of Ukraine during the week will be moderate rainfall, which will improve the hydration of the soil before sowing of winter wheat. The soil moisture deficit substantially delayed sowing of winter crops, because producers did not venture to sow without the predicted rain.

In Russia the number of soil moisture was sufficient, therefore, winter wheat sown for 55% of the planned areas. In the next 7-10 there will be moderate, and in some regions a slight rain.

In Argentina, where as a result of moisture deficit reduced the forecast production of wheat last week were little precipitation, but in the next 7-10 days is expected to moderate and heavy rains that will improve the condition of wheat crops and soil conditions of the soil.

In Australia, the rainfall is sufficient. Powerful rains which will be held during the week, will contribute to the development of canola and wheat, and obtaining a record harvest that will increase pressure on prices.

Precipitation last week in Brazil, allowed us to start sowing of soybean. During the week there will remain dry weather, which will accelerate sowing, however, reinforce the concern about possible delay of the rainy season due to the phenomenon of La Nina. The amount of precipitation on soybean crops in Brazil in the near future will significantly affect the markets of oilseeds.