Grain markets are concerned about rainfall shortages in Argentina and southern Brazil

The weather in South America mainly contributes to the formation of a good harvest of cereals and oilseeds, but in Argentina and southern Brazil, precipitation is lower than normal, which worries traders. In Australia, dry weather accelerated the harvesting of a record harvest of wheat and barley. In the United States, there were storms that brought rain to the regions where winter wheat is grown, but in the southwest there is insufficient precipitation.

In the Black Sea region last week there were heavy rains, which replenished the reserves of soil moisture and improved the condition of winter wheat crops. A new wave of precipitation is expected next week, but a drop in temperatures to sub-zero levels will stop the vegetation of plants.

In the northern and western regions of Ukraine in the first decade of December, the vegetation of winter crops stopped, but in the south and in some places in the central regions, a slow growth process was observed on crops. Precipitation in the form of snow and rain is expected next week, as well as a significant decrease in temperature, but there will be no threat to crops.

In Russia, heavy rains continue in the regions where winter wheat is grown, especially in the south-west of the country (Stavropol, Krasnodar Krai and Rostov region), which improve the condition of crops against the background of higher-than-normal air temperatures.

In the United States, severe storms with winds and thunderstorms have taken place in recent days, which have increased precipitation in areas of the Great Plains and the Midwest, which will improve the condition of winter crops. However, in the south-western regions of the country, the amount of precipitation remains insufficient. Next week, a new wave of precipitation will cover the south-western part of the winter wheat growing regions, but they will be insignificant and arid phenomena will remain in the fields.

Heavy rains took place throughout Argentina this week, which will contribute to the development of soybean and corn crops, but will not be enough to form a good harvest. Light precipitation will pass over the weekend in the southern regions, and then dry and warm weather will be established.

In Brazil, heavy precipitation occurs in the central regions, which contributes to the development of soybean and corn crops, but in the south, dry weather worsens the potential of the crop. Local agency AgRural lowered its forecast for corn production from 115.5 to 114.4 million tons, and soybeans from 145.4 to 144.7 million tons, which will still be a record level. Next week, the country will continue to have favorable weather for the development of soybean and corn crops.

In eastern Australia, precipitation has decreased, which has accelerated the harvesting of wheat, barley and rapeseed. The forecast for the wheat harvest has already been raised to 34-35 million tons, while the USDA in December estimated it at 33 million tons.