Forecasts of precipitation in Argentina and warm weather in the US and Europe will reduce speculative pressure from weather factors on prices

Traders are currently focused on the weather in Argentina, where a drought in January reduced the potential yield of soybeans and corn. But last week’s rainfall improved the condition of the crops, while weather conditions in Brazil remain very favorable. In Argentina, a front brought heavy rain to some of the driest areas on Wednesday, and a new front moving north on Friday brought additional rain. Several waves of rain are expected this week, which could improve the crop. According to the Buenos Aires Grain Exchange (Bolsa de Cereales), as of February 6, sunflowers had been harvested on 27.9% of the planned area, with an average yield of 2.28 t/ha (+0.1 t/ha compared to last year), raising the harvest forecast by 400,000 t to 6.2 million t (vs. 5.5 million t last season) due to an increase in area to a 10-year high of 2.7 million t. Heavy rains are falling across Brazil , helping to develop late soybean crops and sow a second crop of corn. Soybeans have already been harvested on ...