Rain in Europe, Australia and Brazil and heat in Argentina will affect markets next week

Traders continue to monitor weather conditions in South America, which mainly favor the development of soybean and corn crops. However, the heat forecast in Argentina in the coming weeks could lower production forecasts, as is currently happening in Brazil.

In Argentina, heavy rains in recent weeks have replenished soil moisture and improved the condition of soybean and corn crops. But dry weather and heat at 28-32 ^o C in the next two weeks will negatively affect the plants.

In central Brazil, rainfall increased this week, but it will not be able to improve the condition of early soybean and corn crops. Next week, the rains will become heavier, which will have a favorable effect on soybean crops. Drought-stricken southern areas, particularly the states of São Paulo and Paraná, also received heavy favorable rains.

Weather is improving across most of the country, even in drought-stricken central areas, but low soil moisture reserves will adversely affect second-crop corn planting. It is very important that during the sowing of corn, which is carried out as soybeans are harvested, rains pass in the country.

Against the background of dry weather in November and December, StoneX experts lowered the forecast for wheat production in Brazil to 8.25 million tons, and soybeans to 152.8 million tons, compared to 10.6 and 159 million tons, respectively, last year.

In the coming days, a wave of arctic air will bring snowfall and frosts of -25...-15 ^o C to the main regions of wheat cultivation in the USA , but they will be short-lived, so they will not harm the crops.

In the Midwest of the USA, there will be moderate precipitation in the form of snow, which will protect crops from the upcoming cold waves. Frost and snow are also expected in the Central and Southern Plains of the United States. Most of the crops are protected by a layer of snow, except in the states of Oklahoma and Texas, where frost can damage the plants.

In the south of Europe, stormy rains will continue until Saturday, which will bring precipitation to the wheat fields of Italy and Spain, where there is a shortage of moisture. Next week, the rain front will spread to the northern regions.