Forecasts of increased precipitation intensity in major exporting countries this week will affect the markets

Traders are closely monitoring weather conditions in the Southern Hemisphere, where precipitation remains below normal due to the El Niño phenomenon. Special attention is paid to Brazil, in the south of which there is already an excess of rains, and in the center (the main areas - producers) - a shortage.

Heavy rains in southern Brazil last week led to further flooding, which will have a negative impact on the harvesting of winter wheat and the sowing of soybeans and corn. According to forecasts, the rains will continue next week. Dry, hot weather is prevailing in the center of the country, which will force farmers to replant soybeans and corn if the region does not receive good rainfall during the week. Meteorologists are predicting rain in central Brazil next week, but the intensity will be much lower than normal and the rainy season will be delayed.

In Argentina, after last year's drought, the amount of precipitation is gradually increasing. Heavy rain is expected next week, particularly in the central and northern regions. Soybean and corn planting rates remain slow, but will accelerate in the near term thanks to rainfall.

The Midwest and U.S. Plains experienced showers during the week that delayed the harvest of soybeans and corn, but helped the development of winter wheat crops. After a dry and warm weekend, temperatures and periodic showers are expected to drop next week. Water levels in the southern Mississippi delta are very low due to dry weather, making it difficult to transport grain to ports, but more precipitation is expected in those areas as well during the week.

Starting from the weekend, moderate scattered showers will take place in Ukraine and EU countries, which will replenish moisture reserves, lower temperatures and allow sowing to be completed. Harvest rates remain high.

In southern Australia, dry weather in recent weeks has adversely affected wheat and canola yields, but scattered rain is expected in the near future to ease drought pressure on crops.