Precipitation in the United States, Brazil, and Argentina improves harvest prospects

Traders are currently focusing on weather conditions in South America, where rains are improving harvest forecasts. In addition, periodic precipitation occurs in some regions of the United States and Canada, where droughts were observed in autumn and winter.

Heavy rains hit the drought-stricken areas of the United States in the United States this week. Heavy rains have hit the southern plains and the northwestern United States, so drought has subsided in much of the region. The amount of precipitation exceeded the norm of March, and the rains forecast for next week allow us to hope for sufficient reserves of soil moisture for sowing spring crops.

In the Midwest, the amount of precipitation in the corn belt is sufficient. Heavy rains took place there this week, including in arid northwestern areas. The southern states have begun sowing corn, and traders are trying to estimate how much the area under spring wheat and corn will increase.

Scattered precipitation fell in northern and central Brazil, but was low in the south. There will be even less rainfall next week, and traders fear that the rains will end long before the dry season (May-June), which will negatively affect second-crop corn crops.

Heavy rains this week took place in Argentina. They will last until the weekend, and then the intensity of precipitation will decrease. Rains will have a positive effect on late soybean and corn crops, but the January drought has worsened yield potential, so production forecasts continue to decline.

In the Black Sea region, the weather promotes the development of winter wheat crops. Against the background of high temperatures and wind, the humidity of the topsoil has dropped sharply, so the precipitation forecast for next week will be very important for crops.

Fighting continues in Ukraine, which hinders the sowing campaign in the southern, northern and eastern regions. The logistics crisis has reduced the amount of mineral fertilizers, which raises concerns about the fate of future harvests.

Drought has been recorded on most of the Canadian prairies, and in southern Alberta and central Saskatchewan in late February it was assessed as "extreme" due to a lack of rainfall in autumn and winter.

In 2022, Canadian farmers may again suffer from drought, although analysts expect an increase in wheat and canola yields due to expanded sowing areas, which will reduce food inflation caused by Russia's war against Ukraine and the entire civilized world.