Weather conditions around the world favor crop development, but Argentina continues to experience a lack of rainfall

Weather conditions in December and January will determine the fate of the crop in South America, so traders are predicting how much the lack of rain in Argentina will reduce soybean and corn yields.

In Ukraine , the weather does not allow to complete the harvesting of corn, but next week several days of dry and frosty weather are expected, which will allow the work to continue. Now, 18.4 million tons of corn have been threshed from 70% of the areas, out of the 27 million tons predicted by the USDA.

Rains fell across Argentina this week, too little to improve the condition of crops, but they allowed sowing to be accelerated. According to the BAGE exchange, as of December 14, 16.7 million hectares or 50.8% of the planned areas were sown with soybeans, and 42.6% of the planned 7.3 million hectares with corn, which is 14.2% and 5.1% respectively accordingly inferior to last year's pace. Wheat has been harvested in 53.8% of the area, and the Rosario Grain Exchange again lowered its forecast for the wheat crop in Argentina from 11.8 to 11.5 million tons, while the USDA estimates it at 12.5 million tons. Next week, temperatures will rise to 27 -30 ^o C, which against the background of rainfall deficit will continue to worsen the condition of crops. The Rosario Exchange left the 2022/23 FY soybean production forecast at 48 million tons and 56 million tons of corn, while 44 million tons of soybeans and 51.5 million tons of corn were harvested in 2021/22 FY.

Rains are falling in northern and central Brazil and will continue next week, helping the first crop of soybeans and corn to grow amid mild temperatures. The front also brought precipitation to the southern regions, but their amount was insufficient. In Rio Grande do Sul, below-normal rainfall is delaying planting and can stress crops. In other regions, the weather generally favors the development of soybean and corn crops.

Heavy snowfall from the northern Midwest and US Plains is moving south, but the central and southern Plains regions will see very little precipitation and the Southwest regions will continue to experience drought. Within 7-10 days, temperatures will drop to -20..-15 ^o C, which will negatively affect weak and snow-protected wheat crops. Heavy rains have raised water levels in rivers, particularly in the Mississippi, which will improve the pace of grain shipments by river transport.

In the countries of the EU and the Black Sea region, the weather with periodic precipitation and mild frosts favors the development of winter crops.