Increased precipitation in the US, Canada and the EU and dry weather in Argentina will affect markets throughout the week
Dry weather has set in South America, which will allow harvesting to be completed, so now traders are more closely following the news from the Russian Federation, where frosts could damage winter crops.
Last week, frosts down to -5..-9 o C in the central regions of the Russian Federation damaged part of the crops. Initially, it was believed that 20 thousand hectares would have to be replanted, then this figure grew to 500, and now it has reached 800 thousand hectares or 1% of all areas under hot crops in the Russian Federation.
In the coming days, the south of the Russian Federation and the south-east of Ukraine will receive rains favorable for the development of crops. In general, in Ukraine, May weather with moderate temperatures favors the vegetation of plants, despite the lack of precipitation.
According to the Ukrhydrometeorological center, the accumulation of effective heat created favorable conditions for the initial vegetation of plants, more slowly than in the previous period, and the reserves of productive moisture in most areas were sufficient or optimal, despite the absence of rains. At the same time, the frosts of the last decade damaged vineyards, fruit, vegetable gardens, melons and other heat-loving crops.
Heavy rains are continuing in the Midwest, Central and Southern Plains of the United States , which are delaying seeding but promoting plant development, especially against the background of cool temperatures. Showers and thunderstorms will continue in the "corn belt" next week, but temperatures will rise to 25-30 o C, which will have a positive effect on crops.
As of May 12, in the USA, 49% of the planned areas were sown with corn (54% on average over 5 years), 35% with soybeans (34%), and 61% with spring wheat (48%).
Heavy rains are expected across Canada's prairies next week, replenishing moisture supplies but delaying planting, which is lagging behind last year's pace due to cold spring weather.
In Brazil's southern state of Rio Grande do Sul, rains continue to exacerbate flooding that could lead to the loss of nearly 1 million tons of soybeans. In the next few days, precipitation will spread to the north, to the regions where corn is grown for the second crop. But in the central state of Mato Grosso, it is still very dry, and temperatures exceed 30 o C, which negatively affects the development of corn crops. In general, soybeans are harvested on 96% of the country's area, while in Rio Grande do Sul - on only 79% of the area.
Dry and cool weather prevails in Argentina , which favors the intensification of the harvesting of soybeans and corn and the sowing of winter wheat. During the week, 50% of soybeans and 25% of corn were threshed in the country.
Rains once again covered Western Europe. In France and Great Britain, the weather is excessively wet. Next week, the front will spread to the east of the region, where precipitation is needed. Rains in Spain have improved wheat production forecasts.
In most regions of Australia, dry weather will continue next week, favorable for sowing winter crops. But in the coming months, rainfall will increase as El Niño is replaced by La Niña.
