Increased rain intensity in Brazil and Argentina accelerates planting and lowers prices

Heavy rains in Brazil, Argentina and the United States have improved the outlook for the upcoming harvest, adding pressure on prices amid weak demand for the old crop.

According to the Buenos Aires Stock Exchange (BAGE), heavy rains in Argentina's main agricultural regions have improved soybean, corn and sunflower harvest potential. As of October 23, 22% of the planned 7.3 million hectares were sown with corn, 32.3% of the planned 1.95 million hectares with sunflowers, and soybean sowing began. Next week, heavy rains will pass in the country, which will reduce the effects of the drought of the last months, accelerate the development of crops and replenish moisture reserves on the eve of soybean sowing.

In southern Brazil, excessive rains hampered wheat harvest and corn development, but central areas continued to experience dry weather (especially in the state of Mato Grosso) with below-normal rainfall delaying soybean and corn planting. Next week there will be only scattered rains.

In the Midwest and the US Plains, showers and thunderstorms passed last week, which improved the condition of winter wheat crops. However, a decrease in temperatures can stop the development of crops. Soybean and corn harvesting rates are higher than last year, and the rains did not significantly delay work. Warming is expected next week, which, against the background of a lack of precipitation, will accelerate the harvesting and development of crops.

In Europe during the week there were periodic showers, which will continue for another 5-7 days. They stopped the development of winter crops, although they slowed down the harvest. Higher than normal temperatures, especially in the east of the region, accelerate plant development.

Rainfall occurred in Ukraine , but the amount was insufficient, especially in the southern regions. Next week, temperatures will exceed the norm, which, against the background of a lack of precipitation, will allow the sowing of winter crops and the harvesting of corn to be completed.

In the Russian Federation, 80% of the territory is covered with snow, but there have been scattered rains in the south, which, against the background of higher than normal temperatures, will improve the condition of crops.

A cold front brought showers to Australia's southeast and coast last week, but inland regions remain rain-free. Weather conditions are not conducive to wheat and canola filling. No significant rainfall is expected next week, so crop forecasts remain low.