Precipitation in the United States and South America reduces the impact of the weather factor on grain markets

Precipitation in Argentina and southern Brazil, which took place this week, improved the condition of soybean and corn crops. However, local analysts believe that the potential for a record harvest has been lost, so they continue to lower their forecasts. No precipitation is expected in the next 7-10 days, which keeps prices from falling.

In the United States, in the regions where winter wheat is grown – the states of Kansas and Texas, heavy precipitation in the form of rain and snow-improved the condition of crops and led to a sharp drop in prices, especially given the good conditions for wintering wheat crops in the EU, Ukraine and Russia.

A new wave of cold weather with precipitation in the form of snow and rain came to the Southern Plains of the United States this week, which reduced the dry phenomena, but did not completely remove them. In the Western Plains and northwestern regions of the Pacific Coast, light precipitation has passed, but the drought is increasing.

In the US corn belt, especially in the central and eastern regions, heavy snowfalls have occurred, which will improve moisture reserves on the eve of sowing.

In Argentina, after heavy rains last week, 30-35 mm of rain fell this week. They have improved the condition of soybean and corn crops, but further forecasts for February and march do not provide for precipitation due to the La Niña phenomenon. No precipitation is expected for 7-10 days, but temperatures are at the level of 25-25 ^OhC promote plant development.

In the south of Brazil this week there was precipitation, which improved the condition of soybean and corn crops, especially late ones, but local agencies lower their forecasts for soybean production in 2021/22 MG. Thus, Cogo lowered its forecast from 131 to 125 million tons compared to December estimates, and Datagro – from 142.05 to 130 million tons (144.06 million tons at the beginning of the season).

Most analysts believe that in 2021/22 MG, the soybean harvest in Brazil will not exceed 130 million tons and expect official forecasts of the USDA (February 9) and the Brazilian agency Conab (February 10).

In the North and center of Brazil, there are periodic rains that replenish moisture reserves, but delay the harvesting of soybeans and the sowing of corn of the second crop.

In Russia, the main regions of winter crop cultivation have developed satisfactory agrometeoo conditions for wintering. During January, the snow layer increased to 3-50cm, the temperature by 2-5 ^OhC exceeded the norm. In some southern regions, they began preparing the soil for sowing.

In Ukraine, weather conditions without Frost contribute to the wintering of winter crops, but the snow layer is only 1-10 CM. Although new snowfalls are expected in the coming days.