Головна Economics and agricultural policy Rains in the US and Brazil and drought in Ukraine and Russia...

Rains in the US and Brazil and drought in Ukraine and Russia are now main drivers of pricing

rain field

Active harvesting of late crops in the Northern Hemisphere and projected yields of soybeans, sunflowers and corn are increasing pressure on prices, especially given increased precipitation in Brazil, where soybean and corn production is expected to surge this season due to expanded planting areas.

Dry weather in Ukraine, Russia and Argentina negatively affects crops of winter wheat and reduces potential of the future harvest, which was a new factor supporting wheat quotations. ProAgro Group reports this, citing GrainTrade.

In Ukraine and southwest Russia, dry and warm weather prevails, which helps to complete the harvest and sowing of winter crops. But the lack of precipitation delays the emergence of seedlings, development and rooting of plants. From Wednesday the amount of precipitation will increase, which with the temperature around 12-14оС will allow sprouts on late crops and improve their condition.

In Russia as of October 25 winter crops have been sown on 17,5 mln ha or 92% of planned area, which is 0,7 mln ha less than last year. In Ukraine as of October 25, 6.5 million hectares or 83% of planned 7.84 million hectares were sown with winter crops.

During the week there will be rains all over Argentina and Brazil, which will increase pressure on soybean prices, which are already falling amid a good harvest in the U.S. and low demand from China.

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