Hot and dry weather in southern South America continues to reduce the prospects for soybean production

Arid conditions in southern Brazil and Argentina continue to worsen soybean and corn crop prospects, but additional precipitation is forecast next week, which will slightly reduce the drought pressure on crops.

In the state of Parana, which is the second largest soybean producer in Brazil, high temperatures remain above 30 degrees without precipitation. While heavy precipitation in the central and northern states, as well as the lack of sunny days, delay the ripening of soybeans.

 For the next 8-10 days, an increase in precipitation is forecast in the state of Parana, which will have a positive impact on soybean crops.

In Argentina, last week there was a small scattered precipitation, which was insufficient to improve the condition of corn and soybean crops, and this week temperatures are forecast to rise to 30-35 degrees without precipitation, and only next week a new wave of precipitation and a decrease in temperature will come.

According to the Buenos Aires Stock Exchange (BAGE), the weather in December was dry, and the corn and soybean harvest this season depends on what the weather will be like in January. As of January 6, 86.8% of soybean areas were sown in Argentina, and 77.3% of corn was sown, but the assessment of the state of corn crops in good and excellent condition for the week decreased from 58% to 40%, and in bad condition it increased from 8 to 21%.

At the same time, wheat harvesting was also completed in Argentina, where 21.8 million tons of wheat were harvested.

The heat wave caused a decrease in forecasts of the soybean harvest in Brazil and the agency AgRural is no longer expected to harvest a record soybean harvest in 2021/22, they lowered the forecast of the harvest by 11 million tons to 133.4 million tons, against the previously predicted 144.7 million tons and below last year's record of 137.3 million tons.

Soybean prices in Chicago rose 11% over the month amid hot weather in South America.

Last week, a cyclone entered the United States, which brought Arctic air and snowfall, but this week temperatures will rise again and additional precipitation is forecast, in the form of rain, which will reduce the state of drought on winter wheat crops.

In the southern plains, especially in the western regions, drought persists, which will still have a negative impact on wheat crops, but past precipitation in the northwest

The Pacific Coast has helped reduce droughts in these regions.

In the Black Sea region, the weather remains favorable for winter crops with heavy precipitation in the form of rain and snow, as well as with temperatures above normal. For the next week, a wave of cold weather is forecast with new snowfalls, but then again an increase in temperature above 0 degrees.