According to forecasts, the weather will be mostly favorable for the development of agricultural crops

A decrease in the intensity of rains in Australia and an increase in the USA and South America next week, as well as a lack of precipitation in the south of Ukraine, will be the main factors affecting agricultural markets in the near future.

In the U.S. "corn belt," warm and mostly dry weather allows soybeans and corn to be harvested with low moisture values without loss, which will reduce drying costs. StoneX Group experts increased the forecast of corn production in the USA in 2022/23 MR by 1.3 million tons compared to previous estimates to 358.4 million tons (at an average yield of 11 t/ha), which will be significantly inferior to 382.9 million tons. collected in 2021/22 MR with an average yield of 11.1 t/ha due to a significant reduction in the sowing area. Light precipitation next week will replenish the moisture reserves of winter crops. In the areas of the Plain, rains will also pass and the temperature will drop, but in the west precipitation will be minimal, so wheat crops will remain in poor condition.

In Brazil, the weather in most regions favors the cultivation of soybeans and corn. The lack of heavy rain this week has allowed planting to be stepped up, which is crucial ahead of the expected heavy rains next week in the central and southern regions.

Drought persists in Argentina , but there will be some rain next week, which will improve the condition of soybean and corn crops, although it will not help wheat crops.

In Australia, recent rains may have damaged the quality of the wheat crop and led to flooding in eastern areas. However, precipitation will decrease next week, which will reduce soil moisture. According to Reuters, heavy rains in the main wheat-growing regions have significantly worsened its quality, although crop forecasts remain at a record level. However, almost half of the crop in the eastern grain belt, where premium durum wheat is grown, is likely to be of feed quality.

In the Black Sea region of the Russian Federation , the weather favors the development of winter crops, but heavy rainfall in the central regions of the Black Sea region delays harvesting and sowing of winter crops.

In Ukraine , the weather favors the harvesting of late crops, but the lack of precipitation in the south of the country worsens the condition of crops. Next week, there will be light rains in the country, but they will not affect the southern regions.

According to the Department of Agricultural Policy of the Odesa region, local farmers sowed 167,000 hectares with winter rapeseed, 423,000 hectares with winter wheat or 79% of the planned areas, and 123,000 hectares with winter barley or 60% of the areas. Due to the lack of moisture in the one-meter layer of the soil and the lack of precipitation in the south of Odesa, the area of dead winter crops grows every day. To date, 6,000 hectares of rapeseed and 2,000 hectares of winter wheat have already died.