Precipitation Forecast in the USA, Argentina, Brazil, and Ukraine Will Affect Wheat and Corn Prices

The agricultural commodity market expects that increased precipitation in the USA, Argentina, Brazil, and Ukraine will improve the condition of agricultural crops. This, in turn, may lead to an increase in sales of the old harvest and a decrease in speculative pressure on wheat and corn prices.

This is reported by AgroReview

Crop Conditions in Ukraine

With rising temperatures in Ukraine, the vegetation of winter crops has resumed, and the planting of early spring crops has begun. As of March 20, 4% of the planned area for grain and leguminous crops has been sown, amounting to 5.764 million hectares, or 250.4 thousand hectares. In particular, 36.7 thousand hectares of spring wheat have been sown, which is 16% of the forecast, 133.5 thousand hectares of spring barley (17% of the forecast), 29.2 thousand hectares of peas (26%), and 9.7 thousand hectares of oats (10%).

Precipitation in Brazil and Argentina

In Brazil, heavy rains have been observed over the past week, which will continue for another 7 days. While this delays soybean harvesting, it positively impacts the development of the second crop corn. Next week, a new front will bring another wave of precipitation to Argentina and southern Brazil, which will be favorable for late soybean and corn planting, especially in drought-prone regions.

In the USA, in the main winter wheat growing areas, rains also occurred last week, improving moisture reserves against a backdrop of rising temperatures and resumed vegetation. In the drought-affected areas of the Midwest, the rains have softened the soil ahead of fieldwork and planting. Next week, a new wave of precipitation is expected in the Midwest and the Plains of the USA, reaching the southwestern regions where moisture is lacking.

In southwestern Europe, particularly in Spain, heavy rains have led to flooding. Next week, a cyclone will spread eastward, forecasting heavy rains across Europe, which may improve crop conditions and facilitate the planting of spring crops.