Lack of precipitation and hot weather in the spring wheat growing area are the main weather factor on the market

2021-07-02 14:33:27
Machine translation
Lack of precipitation and hot weather in the spring wheat growing area are the main weather factor on the market

During the growing season of agricultural plants, markets remain under pressure from the weather factor in the main grain producing and exporting countries. This week, the weather continued to increase speculative sentiment due to abnormal heat in Canada and the northwestern United States: frosts and snow in Brazil, as well as increased heat with a lack of precipitation in Central and eastern Russia.

 

Frosts and light snow in southern Brazil in the states of Paraná and Mato Grosso de Sul can damage corn cane and coffee crops, especially weak crops that are suffering from arid conditions this year. In the state of Mato Grosso, corn crops still suffer from a lack of precipitation at temperatures of 30-32 degrees.

 

 

In Canada, abnormally hot weather is moving from West to East and has already reached the areas growing spring wheat and canola in Manitoba, as well as Saskatchewan, where the air temperature reaches 30-35 degrees and only from next week the temperature is forecast to drop to 23-25 degrees and light precipitation until the end of the week, which will reduce the impact of stress, but precipitation will not be enough to improve the condition of crops.

 

 

 

In the United States, the heat wave has also shifted from the Western states to the southern and Northern Plains, and dry and hot weather is forecast for the coming week, which will continue to worsen the condition of spring crops, especially wheat and soybeans, whose quotes on stock exchanges continue to grow. In the winter wheat growing area (in Kansas), it rained this week, which delayed the pace of harvesting and led to a deterioration in the quality of wheat.

 

 

 The U.S. corn and soybean belt experienced generally favorable weather conditions, but soil moisture reserves in the northwest remain significantly below average, which is especially important during the period when corn is entering pollination and soybeans are entering the flowering and Pod formation phase.

 

According to the USDA report, the area of corn and soybean sowing was increased mainly in the Northwest, where the weather is not conducive to a good harvest, which is why the market reacted so sharply to the report's data – an increase in corn and soybean prices by 6-7%.

 

Light precipitation is forecast for the coming week in the north-west, while excessive precipitation and possible flooding will fall in the south-eastern regions.

 

 

In Russia and Ukraine, there is also an "incorrect" distribution of precipitation, when it rains in the south, where winter crops are being harvested, and in the central and eastern regions hot weather remains with a lack of precipitation in the fields of spring crops.

 

In the area of the Volga region and the Asian part of Russia in the second half of June, the temperature was 5-10 degrees above normal without significant precipitation, and the same hot weather is forecast for the next week. In the south of Russia, winter crops are being harvested in the Stavropol Krasnodar Territory and heavy precipitation is forecast for the next 4-5 days, as in the south of Ukraine, which may worsen the quality of wheat.

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