Rains in the USA and Western Europe and drought in the south-west of the Russian Federation will affect grain markets next week

Traders' attention is currently focused on the weather in the south-west of the Russian Federation, which will remain dry and hot for several more weeks, while winter wheat crops are experiencing a severe lack of precipitation. World wheat prices rose by 20-30% in 2 months based on forecasts of a decline in the wheat harvest in the Russian Federation.

Since Tuesday, rains have come to Ukraine and the south-west of the Russian Federation, but in the northern regions there was only 5-15 mm of precipitation. A new wave of precipitation is expected in the next few days, but it will be insignificant.

Next week, temperatures will rise to 30-35 ^o C in the Rostov region, Krasnodar and Stavropol regions, but the lack of rain will continue to reduce the harvest potential. At the same time, there are abundant rains in the spring wheat growing regions of the Russian Federation, which replenish moisture reserves, although they delay sowing.

In the U.S., a brief period of dry weather has allowed planting to accelerate, but as early as next week, the cyclone will bring another wave of crop-friendly rain to the Midwest and Great Plains, although it could lead to flooding in some areas. Soybean and corn planting rates are above the 5-year average, but lower than last year. However, this week the farmers will be able to complete the sowing.

In the Canadian prairies, there will be rain for several more weeks, which will delay sowing, although it will increase moisture reserves. Low temperatures negatively affect the development of crops.

In the central regions of Brazil, the weather is dry and hot, but in the southern regions, in particular the state of Paraná, little precipitation has passed. Second-harvest corn has been harvested on 4% of the area, and analysts estimate the total harvest at 120-123 million tons, which corresponds to the USDA forecast.

In Argentina, dry and cool weather hastened the harvest of soybeans and corn. But corn has high humidity, so farmers are waiting for frosts, after which they will continue harvesting. Dry and frosty weather does not contribute to the development of winter wheat crops, but significant reserves of moisture support vegetation.

In most of Europe , especially in Great Britain, France and Germany, excessive rains continue, and low temperatures are not very conducive to the development of spring crops. Next week, the rains will spread to the eastern regions, where there was a shortage of moisture, and temperatures will remain low.

In Australia, the rains will pass in the eastern and western regions where grain and oil crops are grown, which will allow the planting of canola to be completed and the sowing of wheat and barley to be accelerated. The arrival of La Niña will increase the amount of favorable precipitation in the coming months.