Drought forecasts in Brazil and the Northern Plains may support corn prices

Published 2021년 4월 9일

Tridge summary

Recent articles have highlighted the impact of weather conditions on the agricultural sector, particularly in Brazil and Argentina, where a period of decreased precipitation is expected to affect soybean and corn prices. In the US, warm weather and intermittent rains are aiding corn sowing, but a lack of rain in the northern plains is causing concern for spring wheat and corn prospects. Despite initial setbacks, USDA experts and local analysts have increased their production forecasts for Brazil's soybeans and corn, attributed to significant soil moisture reserves following January's heavy rains. In contrast, Argentina experiences delays in soybean and corn harvesting due to heavy rains, leading to lower than expected yields and revised production forecasts. Europe's cold and intermittent rainy weather is aiding the sowing of spring crops and the development of winter crops, which boosts production predictions and puts downward pressure on prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Currently, traders' attention is focused on the weather in Brazil and Argentina, where a decrease in precipitation in the next 10-14 days will be a new factor in the speculative impact on soybean and corn prices. In the "corn" zone of the United States, warm weather with intermittent rains promotes the sowing of corn. In the southern plains of the United States, recent rainfall has improved winter wheat crops. The rains over the weekend will replenish the soil's moisture reserves, and the dry weather next week will help sow spring crops. There has been no rainfall in the northern plains of the United States, particularly in North Dakota, and increased drought is reducing the prospects for spring wheat and corn. According to the forecast, there will be no rain for the next 7-10 days. After heavy rains in Brazil in January, February and early March, USDA experts and local analysts raised soybean and corn production forecasts, believing that significant soil moisture reserves would ...

Source: Graintrade