Heavy rains in the US, Europe, Ukraine and Argentina, as well as a drought in Brazil will affect markets throughout the week

Traders' attention is currently focused on Argentina, where harvest delays caused by heavy rains could lead to crop losses, as well as weather in Brazil, which has been hit by a heat wave.

More than 200 mm of rain fell in Argentina in April, which improved the condition of late soybean and corn crops and replenished moisture reserves ahead of winter wheat planting. However, rains delay harvesting and lead to the development of diseases, which can reduce the final harvest.

According to the Buenos Aires Grain Exchange (BAGE), as of April 24, corn was harvested on 20% of the area and soybeans on 25%, while the averages are 35% and 50%, respectively. Rains delay the ripening of late crops and lead to the development of diseases. Next week, 10-30 mm of rain will fall again in the country, but then dry weather will prevail for 10 days.

In central Brazil, the dry season started earlier than usual. No precipitation is expected for 10-14 days in the main second crop corn growing regions, while temperatures will exceed 30 ^degrees C. This will force plants going through the pollination and grain filling stages to use limited soil moisture, reducing yield potential. Soybeans and corn are still being harvested in the southern state of Rio Grande do Sul, although soybeans have already been harvested across the country.

Freezes in the Midwest and U.S. Plains led to a speculative rally earlier in the week, but warmer temperatures and intermittent showers have accelerated seeding and are helping crops develop. Soybean and corn planting rates are ahead of average, and forecasters are predicting warm weather with occasional rain during the week.

Showers are expected in arid areas of the Canadian prairies, which will replenish moisture reserves on the eve of sowing, although they will delay it. And in the eastern regions, the moisture reserves are better, and the conditions are more favorable for sowing.

Rains passed in Europe last week, and frosts were observed in some northern regions, which did not damage the sowing of spring crops. Excessive rainfall in France, Great Britain and Germany is delaying sowing, but improving the condition of winter crops and moisture reserves, so the MARS agency has raised its yield forecasts for the new season.

According to the Ukrhydrometeorological center, favorable conditions for sowing have developed in most regions of Ukraine . Precipitation replenished the reserves of productive moisture in all layers of the soil, but in the south of Dnipropetrovsk and Kherson regions, the amount of precipitation was less than normal, and the moisture reserves were reduced to insufficient. In the second decade of April, the conditions for sowing and plant development were satisfactory, but due to too high temperatures in the second half of March and April, the development of early cereals is almost a month ahead of average rates.

As of April 25, 45.5% of the areas in Ukraine were sown with summer crops, and dry and warm weather next week will allow farmers to accelerate sowing and complete it in the optimal time frame.