Increased precipitation in the US, Australia and Ukraine and dry weather in Europe will affect markets in the near future

Traders' main attention is now focused on the weather in the US and the Black Sea region, where, after a long deficit of precipitation, rains have begun, improving the condition of crops.

In the Midwest, weather conditions are favorable for corn planting and development, with additional good rainfall expected in the U.S. Corn Belt over the next few days. Corn and soybean planting rates are above average, so actual plantings may be higher than forecast due to reduced spring wheat plantings.

Wheat crops in the Plains, especially in key growing areas of Kansas and Texas, are in poor condition due to a lack of spring rainfall. But rainfall has increased this week, and more rain is expected next week. Analysts doubt the late rains will improve the condition of winter wheat crops, which are scheduled to be harvested in the South as early as June 1, but spring wheat crops will improve.

In the Canadian prairies, a late spring delayed planting, but the weather has allowed for an increase in the pace of planting, and periodic rains this week and next will continue to improve the condition of the crops.

Rainfall in southern Brazil, which is spreading to the central regions, is accelerating the sowing of winter wheat and improving the condition of the second corn crop. The central states have been experiencing hot and dry weather without precipitation, but moisture reserves are still sufficient for the second corn crop.

In Argentina, dry weather is helping to complete the corn harvest and accelerate the planting of winter wheat, but due to the lack of precipitation, wheat harvest forecasts are down compared to last season.

This week, fairly cool weather with active precipitation has set in in the Black Sea regions, which improves the condition of crops and increases the yield potential of winter and spring crops.

In Ukraine, the sowing of spring crops has accelerated over the past week, and recent rainfall has been very favorable for seedlings. Next week, not hot weather with moderate rains is expected, favorable for the development of crops.

Good precipitation is also expected in the southwest of the Russian Federation, which will help increase the yield potential of winter wheat and spring crops.

Recent heavy rains have generally been favourable for most of the wheat and maize crops in Europe. Temperatures are set to rise this week and next, which could cause some stress to the seedlings in the absence of rainfall, but overall moisture reserves are adequate.

A front brought heavy rain to eastern Australia last week, improving soil moisture, allowing for an early start to winter wheat and canola planting. Several fronts will bring rain to the west and east over the weekend and into next week, improving crop potential. But rainfall remains well below last season.

Heavy rains have hit northern and central China this week, but flooding has been limited to areas outside the main growing regions. Some areas in the northeast remain drier, affecting corn and soybean crops. Forecasters predict more rain in those areas on Friday, over the weekend and into next week. Southern rapeseed-growing areas are in much better shape this year.