The precipitation has reduced the pressure of weather factors on the prices of grain markets

2020-10-30 12:03:30
Machine translation
The precipitation has reduced the pressure of weather factors on the prices of grain markets

recently the main factors supporting the price of wheat and corn was drought conditions in the regions of winter wheat production in the United States, Ukraine and Russia. However, the rainfall has already passed and is projected soon calmed the markets.

 

the Rain in Brazil and Argentina have accelerated the pace of planting soybeans and corn, and improved poured the wheat before the harvest, which reduced pressure on prices.

 

Last week in the United States were favorable for winter wheat precipitation, particularly in the States of Kansas, Oklahoma, Iowa and Texas, which suffered from drought. Warm weather next week will accelerate the development of crops before the winter.

 

In the "corn belt" of the US rainfall slowed the harvest of soybeans and corn, but in the next 7-10 days of warm and dry weather will allow farmers to complete the harvest.

 

In Brazil, the powerful rains have improved soil moisture and accelerated sowing of soybeans and corn. During the week in Central Brazil will be heavy rains that will accelerate sowing soybean, whereas in the South rainfall will be insignificant, however, the low temperature will contribute to the development of plants. According to AgRural, as of October 23, the country's soybean planted 23% of the planned areas compared to 8% a week ago and 32% a year ago and 34% in average for 5 years at that date.

 

In Argentina, the periodical rains in the backdrop of warm weather will contribute to filling wheat and speed up its collection, but will also replenish the soil moisture reserves for soybeans and corn. According to the exchange BAGE, moisture reserves in the soil constitute 90% of the wheat collected at 6% of the area of sunflower planted on 60% of the area and the maize – 30% (40% in 2019).

 

Traders believe that the effect of La Nina this year will bring to South America the more arid conditions.

 

In Russia in the regions of cultivation of winter wheat last week, rain fell 15-20% from the norm, but in the next 3-5 days there will be moderate and heavy rains, particularly in the southern Krasnodar and Stavropol territories. They will improve the condition of crops affected by drought, and strengthen them in anticipation of winter. As of October 29, the country sowed winter crops 18.6 million hectares, or 96.8% of the planned areas, and precipitation will exceed the plans of sowing is 3-5%.

 

In the South of Ukraine, which suffers from drought the rains, in anticipation of which farmers actively sow winter wheat on a background of warm weather that will allow seedlings to Mature before winter. As of October 26 winter crops planted 7.3 million hectares or 89% of the planned areas. Provided a warm and dry weather during the sowing rate of 1.1 million hectares for a week by the end of next week the North will be completed.

 

In Australia in New South Wales and South East Queensland wheat harvest confirms the high yields. In Western Australia the collection has just begun. Periodic rain will slow the harvest, however, will contribute to grain ripening.

 

In South Africa due to favourable weather acreage of corn for harvest in 2021 . can increase by 5%.

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