Precipitation and lower temperatures after heatwaves in the US and Europe reduce the impact of weather factors on prices

Forecasts of a hot summer in major grain-exporting countries have not yet come true (with the exception of France), and precipitation last week and this week will continue to improve the condition of crops and reduce speculative pressure on quotes.

The US has seen high temperatures and limited rainfall over the past week, putting pressure on prices, but several showers are expected over the weekend and early this week, which should reduce temperatures and stress on crops. Two fronts are expected to bring heavy rain to some areas, while other regions will remain drier but temperatures will drop to normal.

The US corn crop is currently in the pollination stage, so it is important that temperatures do not exceed 30 degrees. The US corn and soybean crop condition was very good, as it was a year ago, and no significant deterioration in the crop condition is expected during the week.

The Canadian prairies were also hit by a heat wave last week, but the region has seen some rainfall since the weekend, bringing down temperatures. Some areas are receiving more than they should. More rain is expected this week, but overall crops are doing well.

According to government data, there were 858 active wildfires across Canada as of July 16, with 111 considered out of control. Most of the fires were in the central provinces of Manitoba, Saskatchewan and Ontario, and have caused smoke in both Canada and the United States.

Several fronts passed through Europe last week, bringing lower temperatures and improved conditions for spring crops in western regions, although some parts of France remained hot with limited rainfall. Additional rainfall is forecast there this week, moving east and improving spring crop conditions.

Rains that came from Europe over the weekend passed through Ukraine and lowered temperatures, which will help improve the condition of spring crops, although in some western regions the precipitation led to flooding and in some places hail fell.

This week, the country is expected to receive several waves of precipitation that will cover the entire Black Sea region and continue to improve the condition of corn, soybean, and sunflower crops, but will halt the harvest of wheat and rapeseed.

In Australia, after several weeks of rain, drier weather will set in this week in the eastern regions, while several more waves of precipitation will pass in the west.

China's corn and soybean planting weather remains favorable with heavy rain in central regions. More rain is expected this week in the north and northeast, which will benefit corn and soybean plantings.