Favorable weather in Brazil, Ukraine and Australia will pressure soybean, corn and wheat prices in the coming weeks

Traders’ main focus is on weather conditions in Australia and Argentina, where wheat and rapeseed harvesting has begun, as well as in central Brazil, where a new record soybean crop is forming.

Dry weather conditions in Australia are helping to start harvesting winter crops such as wheat, barley and canola, and to start planting cotton and sorghum. Production forecasts are higher than last year, so favorable harvesting conditions should allow for good yields.

Argentina is also experiencing dry weather, which is helping to speed up the harvest of a record wheat crop but is holding back soybean planting, although the region is experiencing occasional scattered showers. Temperatures are expected to reach 30 ^° C this week, but a front will bring light rainfall and lower temperatures to the region later in the week.

Central Brazil received another round of showers and heavy rains last week, improving conditions for the first crop of soybeans and corn. More showers are forecast this week, bringing 30-50 mm of precipitation and continuing to improve crop conditions, although some southern regions remain significantly drier.

Winter wheat growing regions in the US will continue to experience snowfall and low temperatures this week, which will generally favor the winter crop. Periodic cold and warm air fronts are expected to produce additional snowfall throughout the week.

In Ukraine, precipitation has finally stopped and night frosts have begun, which will allow the soil to dry out and late crops to be harvested, but some soybean and sunflower crops may be lost due to prolonged precipitation. Corn harvesting will accelerate significantly, which will increase supply and increase pressure on prices. Winter crops are generally in good condition, as they have received sufficient moisture over the past two months.

In the main winter wheat growing areas in the south-west of the Russian Federation, there are still regions that have not received the necessary rainfall, but in general the condition of the crops is normal, so the harvest forecasts for next year remain high.

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