Heavy rains in the US and Brazil cool grain markets

< span style="font-size:14px;">improved weather in the US and Brazil reduces speculative impact and lowers corn and wheat prices. Wheat-growing regions in the United States will experience heavy precipitation, especially in the Northern Plains, and rain has already fallen in southern Brazil, although it is still expected in the central part. In other grain exporting countries, the weather is favorable for sowing with sufficient precipitation.

< span style="font-size:14px;" > in the Midwest of the United States, sowing of spring wheat, soybeans and corn is almost complete, so the promised heavy rains and high temperatures will contribute to the development of crops. The improvement in the condition of crops, which will be recorded in the weekly reports of the USDA, will continue to put pressure on prices.

< span style="font-size:14px;">in the southern plains of the United States, precipitation that has passed this week and will continue next will remove the problem of drought in the region and accelerate the growing season of wheat crops.

< span style="font-size:14px;" > in the northern plains of the United States (Montana and North Dakota), the drought persists, although light precipitation has passed in some places, and moderate to heavy downpours are forecast for 10 days, which will improve the prospects for spring wheat and other crops. Temperatures will be below normal for a few days, especially in Montana. In the west of the state, there may be a risk of snow accumulation.

< span style="font-size:14px;" > in the central regions of Brazil, weather conditions remain unfavorable for second-crop corn crops, especially in the state of Mato Grosso, where heat has been prevailing since the beginning of April and there has been no rain. In the states of Paraná and Mato Grosso de Sul, good rains have already passed and will continue for 7-10 days, which will improve the condition of crops. Analysts lowered their forecast for the country's corn harvest to 91-95 million tons, compared with 102 million tons in the May USDA report.

< span style="font-size:14px;" > in Canada, precipitation will increase in the canola and spring wheat growing regions, and even wet snow will fall over the weekend, which will slow down sowing. Low temperatures will negatively affect seedlings, but precipitation will reduce the lack of soil moisture and improve crop prospects. The pace and conditions of sowing canola and spring wheat in Canada in the coming weeks will be the main factor influencing prices.

< span style="font-size:14px;" > in Argentina, dry weather contributes to harvesting soybeans and corn. According to the Buenos Aires Stock Exchange, soybeans were harvested on 85.4% of the area (7.9% less than last year), and corn-on 55.2%. 87% of corn crops are in good or excellent condition. Experts of the exchange left the forecast of the corn harvest at 46 million tons, although other analysts estimate it at 50-51 million tons.

< span style="font-size:14px;" > in Ukraine and Russia, the sowing rate is catching up with last year's, but heavy precipitation with low temperatures forecast for next week will delay work, although it will contribute to the development of crops.

< span style="font-size:14px;" > in the main EU producing countries (France, Germany and Romania), favorable weather Reigns, precipitation promised for the next 7-10 days will relieve concerns about the future harvest, although temperatures will be lower than normal.