Favorable precipitation in the US corn belt and the end of the heat wave in Europe will reduce the speculative pressure of weather factors on quotes

The Midwest and Plains have been hit by heavy storms and showers this past week, which will continue to improve corn and soybean crop conditions, although some southern areas received less rainfall. This trend is expected to continue into next week.

In most of the Central and Southern Plains, temperatures remain quite high and precipitation is lower.

Scattered rains occurred in southern Alberta and Saskatchewan, where dry conditions were observed. A new wave of precipitation is forecast this week, which will help fill the crops ahead of the start of harvest. Therefore, we expect further increases in the canola and wheat crop forecasts in Canada.

The fourth heatwave that hit Western Europe last week has ended, and the region saw its first rains over the weekend. Lower temperatures and prolonged rains are expected in France and Germany this week, helping to build up moisture ahead of planting and improving the condition of late crops, although in France, late rains are unlikely to improve damaged crops.

The Black Sea region experienced hot weather with minimal precipitation last week, and this week precipitation will pass and temperatures will drop in western and northern Ukraine, but the eastern and southern regions will continue to suffer from drought, which will reduce the yield potential of late crops and prevent the sowing of winter rapeseed.

The southwest of the Russian Federation is also experiencing a shortage of precipitation, and rising temperatures this week will increase stress for late crops.

Despite last week's rain, Australia continues to be in a generally dry trend due to the development of El Niño. Additional scattered rainfall is expected this week, but it will not be enough to support a good winter wheat and canola crop.