Market Impact Weather

OMAHA (DTN) -- More dryness and heat in central Argentina, and generally favorable conditions across Brazil, are the key weather items for the commodity trade's attention Wednesday.

HOT AND DRY AGAIN IN ARGENTINA

The DTN ag weather forecast calls for hot to very hot temperatures through Wednesday and possibly Thursday to maintain high stress levels on reproductive and filling corn and soybeans in central Argentina. It now appears likely that yield potential for both crops will be declining until rain arrives or temperatures decrease. Showers and cooler temperatures at the end of this week offer some easing of stress.

FAVORABLE BRAZIL CONDITIONS

The general crop weather pattern remains favorable across Brazil. Moderate to heavy rain in central and northern areas is hindering some harvest transportation, but at this point is not adversely affecting soybean crop conditions. Harvest is beginning in south-central areas, mainly in Mato Grosso do Sul, with large yields expected. Far southern areas are dry through late week, with weekend rain in the forecast.

CONTINUED SOUTHERN PLAINS DRYNESS

Drought conditions in the Southern Plains show no sign of easing during the next two weeks. The sustained lack of moisture leads to numerous concerns over further reduction in winter wheat prospects, with acreage already at a historic low. A building cold wave in the Northern Plains also is projected to forge its way southward during the next week, which may bring additional stress to wheat along with livestock.

NORTHERN PLAINS COLD AND SNOW

Northern Plains and western Midwest areas continue in the grip of a harsh cold wave through the next week. In addition, a new round of light to moderate snow during the end of the week will cause transport delays along with livestock stress.

Bryce Anderson can be reached at bryce.anderson@dtn.com

Follow Bryce Anderson on Twitter @BAndersonDTN

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