Rains in the US, Argentina and Brazil are improving crop conditions and reducing weather pressure on quotes
Much of the Midwest and U.S. Plains experienced above-normal temperatures and heavy precipitation this week, which will continue into next week. In some regions, snow will pass and temperatures will drop, which will have a favorable effect on winter wheat crops.
Rainfall has increased in central Brazil , while it has decreased in the south, helping soybean crops grow. Forecasts for the soybean harvest in the central state of Mato Grosso have been sharply reduced, but the total production of soybeans in the country is still estimated at the level of last year - 156-158 million tons.
In Argentina, there have been heavy rains for several weeks, favorable for soybean and corn crops. They will continue next week as well as in January. Against the backdrop of good weather, analysts are raising crop forecasts as well as acreage estimates, as the country's foreign exchange liberalization will boost farmers' incomes thanks to increased exports of soybeans and corn in the near term.
In Europe , after several months of rain, the weather has become drier. In France, due to excessive precipitation, the wheat sowing area decreased by 10%, and dry weather in Spain and Italy negatively affects the development of winter wheat crops. In general, the weather on the continent contributes to the accumulation of moisture and the development of winter crops.
In the Russian Federation, 1 million more hectares of winter crops have been sown than last year, and the state of the crops is much better than the average for the last 5 years, which will allow for a third consecutive high harvest in 2024.
In Ukraine , according to NAAS, the condition of winter crops is mostly good and satisfactory. Temperatures are above normal, and periodic rains replenish soil moisture reserves. If the temperatures exceed 8-10 o C, the plants may come out of winter dormancy, but this will have a positive effect on the development of late crops.
