Heat and the effects of precipitation on the agricultural market

Traders continue to watch the weather in South America, which is generally conducive to a good harvest, although heat forecasts for Argentina next week are cause for concern.

In the United States, severe frosts were replaced by a wave of warm air, which brought additional precipitation to all agricultural regions. The Midwest has seen rain this week and will continue into the weekend. Temperatures will rise above normal next week, reducing snow depth.

The Central and Southern Plains are expected to experience warm weather next week with above-normal temperatures, which will reduce snow depths, particularly in Kansas and Nebraska. In Texas, heavy rains replenished moisture reserves and improved the condition of winter wheat crops.

Favorable showers continued in central Brazil this week, but rainfall intensity will decrease from Monday, allowing soybean harvesting to speed up. At the end of next week there will be heavy rains, favorable for sowing corn of the second crop.

In Argentina, in the main soybean and corn growing regions, long-term rainfall has been replaced by heat of 30-35 °C, which will reduce soil moisture reserves. Dry weather will last 7-10 days, which will worsen the condition of soybean and corn crops, but rain may occur in some regions late next week.