Rains continue to improve U.S. soybeans and corn and Canadian canola and wheat

Much of the Plains, Midwest and Canadian Prairies received heavy rains this week, bringing down temperatures and continuing to improve soybean, corn, spring wheat and canola crops. Rainfall is also forecast in these regions next week.

Storm fronts will arrive in the US Midwest from Canada, which will increase rainfall and reduce heat. Two weeks of rains wiped out dry spells, especially in the central and northern Corn Belt, and added moisture to soybean and corn crops, although they delayed winter wheat harvest. Milder temperatures and increased precipitation in the U.S. Southern and Northern Plains next week will support the development of spring wheat, soybeans and corn crops.

In Canada, canola-growing regions received rains that brought temperatures down to normal and reduced drought stress on plants. Short rains will continue next week.

In southern Brazil, prolonged rains improve the condition of winter wheat crops, but delay the harvest of corn, especially in the states of Paraná and São Paulo. In the state of Mato Grosso, dry and hot weather made it possible to collect already 30% of the corn of the second harvest.

In Argentina, soil moisture is still below optimal, which has a negative impact on winter wheat crops, the area of which is being sown is reduced and the harvest forecasts are again reduced. Corn harvesting is also delayed, and as of July 12, only 58% of the area has been threshed. The Rosario BGR grain exchange lowered the forecast for the country's wheat harvest to 15.6 million tons and soybeans to 20 million tons, although the USDA in July estimated them at 17.5 million tons and 25 million tons, respectively.

The heat cyclone "Cerberus" brought heat of 35 ^o C to the countries of southern Europe , and in the coming days in Italy, France, Greece, Croatia and Turkey, temperatures may reach 40 ^o C, which will negatively affect the sowing of spring crops.

Strategie Grains experts, against the background of difficult weather conditions, again lowered the forecasts for the production of wheat, barley and corn in the EU in 2023/24 MR, in particular:

• soft wheat - up to 126.2 million tons (128.7 million tons in 2022/23 MR),
• barley - by 0.8 million tons to 47.1 million tons (-8% from the indicator of 2022/23 MR),
• of corn - by 0.4 million tons to 60.8 million tons (+17% to the indicator of 2022/23 MR).