Commodities Market Impact Weather

MINNEAPOLIS (DTN) –- A strong storm moving through the U.S. this week followed by a visit from the polar vortex next week, dryness and drought across Argentina, and better rain for Brazil are the weather factors driving the markets Wednesday.

MORE PRECIPITATION FOR THE MIDWEST, THEN COLD

A strong storm system continues to bring widespread precipitation in several bands to the Midwest Wednesday and Thursday, including snow across the north. Cold air will move in behind the system and will be reinforced by a couple of very strong cold fronts next week.

CENTRAL AND SOUTHERN PLAINS EYEING POLAR VORTEX NEXT WEEK

A strong storm system has brought strong winds, severe weather to the southeast, and heavy snow to the northwest Plains over the last couple of days. The snow is winding down but will stick around Nebraska through Friday. Very little precipitation fell in southwestern areas, which continue to be under strong influence of drought. A stronger front will move through early next week with some precipitation but much colder air. An even stronger front will reinforce the cold later next week.

BLIZZARD CONTINUING IN NORTHERN PLAINS, POLAR VORTEX LOOMS

Widespread heavy snow continues in the Northern Plains through Thursday before phasing out into more light snow. That light snow will stick around through the weekend. Cold air is going to move in behind the system, with an arctic blast coming with a cold front this weekend, sticking around through at least Christmas.

RIVER LEVELS STAYING HIGHER FOR LOWER MISSISSIPPI

A strong storm system moving through the U.S. this week will not only bring widespread precipitation to the Delta region but is also bringing widespread precipitation to river systems feeding the Mississippi River, which will help keep water levels up through the end of the year. A couple of fronts may produce more precipitation next week, also aiding water levels.

FAVORABLE WEATHER IN MOST OF BRAZIL

Scattered showers will continue in central and northern Brazil for the next week as is typical for this time of year. A front moved through southern areas on Monday but is getting drier behind it for the rest of the week. Some showers will fill back in over the weekend, but the state of Rio Grande do Sul will see much less precipitation. Drier conditions there are somewhat concerning and could start to create some stress as rainfall has been lower than normal over the last six weeks or so. Otherwise, generally favorable weather continues for most of the corn and soybean areas.

DRY AGAIN IN ARGENTINA

A front moved through Argentina over the weekend, wiping out the extreme heatwave that was in the region all of last week. Rainfall was not very heavy and drought continues to have negative influences on corn and soybean development as well as planting. While this week will not be as hot, the region will be mostly dry. Overall, conditions continue to be poor for corn and soybeans until precipitation becomes more consistent.

John Baranick can be reached at john.baranick@dtn.com

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