Heavy rains in the US and Brazil and drought in Argentina will be the main drivers of price pressure

Traders' attention is still focused on South America, where the weather is generally favorable for soybean and corn crops, but drought is returning to Argentina, albeit with cooler temperatures.

In the main agrarian regions of the Midwest and the Plains of the USA this week, rain and snow will pass, and temperatures will drop to -8..0 ^o C, which will contribute to an increase in soil moisture reserves. Next week, temperatures will again exceed the norm, so in some regions in the south they can start sowing spring crops.

Surveys show that US farmers will drastically reduce the area of corn planted this year in favor of soybeans, and will also reduce the area under wheat.

In the central part of Brazil, the weather is favorable for harvesting soybeans. High harvesting rates allow you to sow second-crop corn faster. Intermittent rains are helping crops grow, so analysts are starting to raise crop forecasts after a recent decline.

At the same time, dry weather has been prevailing in the southern regions for several weeks, crops need moisture. A front from Argentina will bring heavy rains to southern, eastern and central Brazil next week, halting soybean harvesting and corn planting but replenishing soil moisture and improving crop forecasts.

Heavy rains in Argentina this week eased the stress of a nearly three-week drought on soybean crops and stabilized them by replenishing soil moisture reserves. In the next 7-10 days, significant precipitation is not expected, but temperatures will remain within the norm of 25 ^o C, which will accelerate the development of crops. Local analysts leave soybean and corn harvest forecasts at a high level.

The long-awaited rains have passed in the south of Europe , especially in Spain and Italy, and will continue in the future. In the northern and central regions of Europe, sufficient reserves of moisture allow us to hope for a good harvest.

Eastern Australia will see scattered showers next week, while heat in the south-west, and particularly in the west, could affect sorghum and cotton crops as the chance of rain remains very low.