The increase in precipitation in Argentina and Brazil, improving the prospects for crops of soybeans and corn

2021-01-29 12:03:08
Machine translation
The increase in precipitation in Argentina and Brazil, improving the prospects for crops of soybeans and corn

Improved weather conditions in Argentina and Brazil reduces the anxiety of traders over the fate of the crop and reduces the influence of weather factor on the price of soybeans and corn.


throughout Argentina rains, which will last another 5 days. After planting soybean and maize precipitation is very fast because it will give a good start to the development of crops.


According to the exchange BAGE, soybeans in Argentina is sown all scheduled 17.2 million hectares, but due to the delay of precipitation in some southern regions, the forecast of soybean production experts reduced 0.5 million tons to 46 million tons, while USDA estimates it at 48 million tons.


Backlog planting corn from last year's pace is almost closed and is only 1%. Currently corn planted on 6.3 million hectares or 97.9% of the planned areas. A delaying tactic of sowing in expectation of rain proved correct, and now after heavy rains, the development of crops will be active. Experts BAGE kept their forecast for corn production in Argentina this season at 47 million tons, while USDA estimates it at 47.5 million tons, and some analysts lowered their forecasts to 43-45 million tons.


In Brazil are powerful rains which will last for another 5-7 days, which is very important for the southern regions, which suffered from moisture deficit. Heavy rains stopped the harvesting of soybeans, which delays the sowing of maize second crop and reduce the volume of exports, resulting in again increased the demand for U.S. soy.


For the delay cleaning experts export Association Anec has lowered the forecast of soybean exports from Brazil in January, from 1 million tons to 0.22 million tons, and the Agency AgResource has reduced the forecast of soybean production to 128 million tons, while USDA and other analysts estimate it to 133 million tons.


Ukraine and Russia are strong, though short-lived, temperatures down to -18..-30 degrees will not hurt the winter wheat crop, which on the eve of the coated layer of snow. During the week in Ukraine will continue snowfalls and frosts to -7...-1 degree, whereas in the South of Russia will be dominated by warm weather +5...+8 degrees with slight rain.


at present the main attention of traders confined to the amount of precipitation on the winter wheat crop in the United States, especially in the Western regions of the Southern plains, where half of the year there is a deficit of moisture. On the Southern plains the next 5-7 days will become warmer, and snow will replenish soil moisture reserves. And moderate rains will improve the condition of winter wheat crops.


In the corn belt of the USA sufficient rainfall will allow farmers to significantly increase the acreage of soybean and corn, especially considering the high prices and demand from China.

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