It is still hot in some countries, but forecasts of favorable precipitation and moderate temperatures in major exporting countries will reduce speculative pressure on prices

Another heat wave that hit France and parts of the US Plains this week continues to reduce the yield potential of spring crops. But rain and lower temperatures are forecast in the next 5-7 days, which will reduce stress on plants.

In the US Corn Belt, heavy showers and thunderstorms are expected to continue into next week, thanks to active cyclones moving through the Midwest. Temperatures are expected to be above normal next week, which will be beneficial for soybean and corn growth.

Corn is entering the pollination phase, so precipitation and low temperatures are critically important for a good harvest.

Heavy rains occurred in the Central and Southern Plains of the United States, reducing plant stress and improving the condition of spring crops, particularly wheat, although rain was limited in the North. Above-normal temperatures are expected in the Northern Plains next week without precipitation, which will negatively affect the condition of spring wheat crops.

The Canadian prairies are set to receive heavy rainfall this week and next, so more warmth is needed to accelerate crop development in the region. The canola growing regions have been experiencing wet weather with moderate temperatures for the past few months, which has delayed crop development.

Hot and dry conditions in Western Europe, especially in France and Spain, are having a very negative impact on corn and other spring crops. In eastern Europe, a cyclone this week brought additional rain and lower temperatures, which improved the conditions for spring crops. In France, precipitation is not expected until the end of next week, so prolonged heat could irreversibly damage some crops.

Several fronts brought precipitation to the Black Sea region this week, covering all of Ukraine, although unevenly. Next week, rains will reach the southwestern part of the Russian Federation, which will improve the condition of spring crops, but will suspend the harvesting of winter crops. The development of corn and soybean crops is delayed due to a lack of heat, and rainy and cool weather is also expected next week.

The heavy rainfall in recent weeks has been very favourable for winter wheat and canola crops in Australia. Additional rain is expected next week, further improving crop prospects. The onset of an El Niño in the Pacific Ocean usually causes dry conditions across Australia, but this has not yet occurred, but could become more pronounced later.

Scattered showers continue in northeast China and the North China Plain, benefiting corn and soybean crops. The country is in the midst of winter wheat harvest. Super Typhoon Bavi is forecast to hit northern Taiwan and then central China over the weekend, with heavy rain expected to hit all of central China next week, potentially flooding crops and disrupting harvests.

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