Improving weather conditions in South America reduce speculative pressure on agricultural markets

Traders are closely monitoring weather conditions in South America as excessive rains continue in Brazil and a deficit in Argentina, while a new wave of frosts is expected in the US and Ukraine. Decreased precipitation in central Brazil has allowed the soybean harvest to resume and the planting of safrinha corn to be accelerated, but increased rainfall is expected in the key soybean growing region of Mato Grosso. Argentina's crop conditions have improved with heavy rainfall, leading to improved soil moisture levels for spring crops. In the US, winter wheat growing regions have seen rain and warming, but cold weather is expected to spread south, potentially damaging wheat crops without snow cover. Dry and frosty weather persists in Ukraine, but crops are not expected to face significant threats in the final stages of the winter period. A deficit of precipitation is observed in key regions for growing winter wheat in the south-west of the Russian Federation, but the warm and rainy weather in December and January has improved the condition of crops. Relatively dry weather remains in most European countries, but rain is expected in the west of the continent which will positively affect crops in Spain, Italy and northern Africa.