Weather forecasts promise precipitation in the US and South America next week
In southern Brazil and Argentina, as well as in the southwestern United States, precipitation shortages remain, which supports the prices of soybeans, corn and wheat. However, over the next 7-10 days, precipitation of varying intensity will occur in all major grain exporting countries.
Traders ' attention is focused on Argentina, where the drought Reigns for two months, which delays the sowing of soybeans and corn, as well as the development of crops. Next week, hot weather will be established there with temperatures of 28-30 OhC, and at the end of the week there will be light precipitation. Sowing of late crops is slow, as farmers expect rain, although forecasts for most of January are not too optimistic.
According to the Commodity Weather Group, in Argentina, almost 10% of crops experience stress, while in southern Brazil, almost 30% of soybean and corn crops experience stress due to lack of precipitation.
In the south of Brazil this week there was light precipitation, which could not improve the condition of crops, given the temperature increase to 28-32 OhC. moderate rains are forecast to occur in the middle and end of next week, which will reduce the level of stress for plants. At the same time, in the central and northern regions of the country, where the main production of soybeans and corn of the second crop is concentrated, heavy daily precipitation contributes to the development of soybean crops.
Several storms that passed over the United States last week brought precipitation in the form of snow and rain to the Midwest and parts of the Great Plains. However, precipitation was minimal in the southwestern states, exacerbating the drought in winter wheat-growing regions. In the states of Kansas and Iowa, the temperature exceeded 10-15 OhC, but there was no precipitation. Next week, the temperature there will drop to subzero, and on Tuesday there will be light rains. Traders believe that frosts can damage winter crops, which is confirmed by the speculative growth of stock prices.
Over the next 10 days, a cold front from the Arctic will bring frosts and heavy precipitation in the form of rain, and later snow to the Northern Plains and the northwestern Pacific coast, but precipitation will not reach the southern regions.
In the Black Sea region this week there were snowfalls that protected crops from frosts that reached -18...-13 OhC, however, did not cause damage to the crops. Next week, a new wave of precipitation is expected in the form of snow and temperatures will rise to -5+ + 5 OhS.
The increase in moisture reserves reduces concerns about the future winter wheat harvest in the Black Sea countries.
In eastern Australia, heavy downpours are expected over the next week, which will stop harvesting rapeseed and wheat, but will have a positive impact on sorghum and cotton crops.
