Rains across much of South America are the main weather factor affecting markets in the coming weeks

The main attention of traders and analysts is now focused on the amount of precipitation and crop development conditions in South America, especially in central Brazil, where a second consecutive record soybean crop is forming.

This week, a cyclone brought heavy rains from central to southern Brazil, improving crop conditions in regions that had previously received less rainfall than the center. Another front is forecast to move south over the weekend and could linger there for most of next week.

In central Brazil, showers have been reported across the region this week, with additional rainfall forecast for the states of Mato Grosso, Goiás, Paraná and further north next week. Overall growing conditions remain favorable across all regions.

Earlier this week, a front from the north brought rain to Argentina, particularly in areas that had already begun to dry out a bit. Another front with heavy rains will hit the northern and central regions over the weekend and early next week. Despite the recent dry weather, soil moisture is still sufficient in most of the country, which is conducive to the development of corn and soybeans.

Additional precipitation has been received across the Midwest and Plains this week, but above-normal temperatures and heavy rains are forecast for next week, which will improve moisture supplies but reduce snowpack on winter crops that are in good condition thanks to significant rainfall in recent months.

Rain has fallen across the Mediterranean this week and is expected to intensify next week. The necessary rainfall is expected in Italy and parts of Spain. In most of the rest of Europe, soil moisture is favorable for dormant winter wheat and rapeseed crops.

Dry weather with frost has settled in most of Ukraine, allowing for the completion of corn and soybean harvests. Temperatures are forecast to drop to -3-8 degrees next week, which will continue to remove moisture from the upper layers of the soil and may negatively affect winter wheat crops in the east and south, where dry conditions have been observed. No significant precipitation is forecast in the next 7-10 days, so Ukrainians will celebrate Christmas and New Year without snow, but with frost.