Drought in the Northern Plains and precipitation in the U.S. corn belt remain the main factors influencing prices

2021-06-25 12:10:14
Machine translation
Drought in the Northern Plains and precipitation in the U.S. corn belt remain the main factors influencing prices

In the regions where spring wheat is grown in the United States and corn of the Second Harvest in Brazil, dry weather continues, while in Ukraine, Russia and the US corn belt, favorable precipitation improves the prospects for the future harvest.

 

In Brazil, the regions where safrigna corn is grown remain dry and hot weather. Due to late sowing, the harvesting rate is 5% lower than last year, and the yield decreases as the crop is harvested. According to Soybean&Corn Advisor, as of June 23, corn was harvested on 2-3% of the area compared to 8% last year, in particular in the state of Mato Grosso-on 3.9% of the area compared to 16.3% last year and 15.1% on average over 5 years. In the state of Parana, which is the second producer of corn, it is harvested only on 1% of the area. Due to heavy rainfall in the state of Parana, 23% of corn crops are in good condition, 45% - in satisfactory condition, 32% - in poor condition.

 

Traders ' attention is focused on the American plains, where due to the drought, the number of spring wheat crops in good or excellent condition for the week decreased by 10% to 27% compared to 75% last year. This week there was light precipitation, which will reduce stress for plants, but will not be able to significantly improve the condition of crops. Next week, dry weather with temperatures of 32-35 OhC will continue to warm up exchange prices for spring wheat.

 

At the same time, corn prices are falling under the pressure of heavy precipitation forecast for the next 7-10 days in the US Corn Belt and moderate temperatures, which will contribute to the formation of a good harvest of soybeans and corn. Prolonged rains and heavy rains will stop winter wheat harvesting in the region and may worsen its quality, although in the first batches of wheat, protein was lower than last year.

 

In Ukraine and Russia, heavy rains occur during the month, which contribute to the development of crops, but delay the harvesting of winter crops. Rain will continue for another week, which may worsen the quality of wheat in the southern regions against the background of rising temperatures. But after 10-14 days, the amount of precipitation will decrease, which will speed up the harvesting of winter barley, wheat and rapeseed.

 

The Russian agency SovEcon raised its forecast for wheat production for Russia by 2.2 million tons to 84.6 million tons due to good yields in the south, and for Ukraine – by 300 thousand tons to 29.2 million tons.

 

Forecasts of heat in Canada without precipitation in the next 7-10 days increase concerns about the fate of the spring wheat and canola crop.

Visitors’ comments (0):