Commodities Market Impact Weather

MINNEAPOLIS (DTN) -- A return of some very cold weather in the United States, and rain for Argentina are the weather factors driving the markets Wednesday.

SNOW CONTINUES FOR MIDWEST, COLD COMING

A stronger system is producing a band of moderate to heavy snow for the eastern Midwest Wednesday. A clipper will bring a strong cold front into the region Friday and Saturday that will send temperatures well-below normal. The front will be pushed southward a couple of times by additional systems during the weekend and next week. Each will bring precipitation with them and push the colder air deeper through the region.

COLD RETURNING TO CENTRAL AND SOUTHERN PLAINS

A system produced heavy, widespread precipitation across the southern half of the Plains Tuesday, including a band of moderate to heavy snow across northern Texas and Oklahoma. This was the best precipitation this region has seen in a long time. A front will move into the region this weekend and may provide some additional showers, but temperatures will fall dramatically behind the front, inducing stress for livestock and threatening winterkill on any exposed wheat.

ARCTIC COLD FOR NORTHERN PLAINS AND CANADIAN PRAIRIES

A clipper system will bring a strong cold front through the Canadian Prairies on Thursday and the Northern Plains on Friday that will bring in arctic air for the end of January and the beginning of February, leading to increased stress for livestock.

WATER LEVELS ON LOWER MISSISSIPPI STAYING UP

Recent precipitation has been able to keep water levels on the Lower Mississippi River from falling into dangerously low territory. The watershed has been active and will stay active with several rounds of precipitation moving through heading into February, which should keep river levels up for a while yet.

RAIN IN BRAZIL DELAYS SOYBEAN HARVEST

Dryness is taking a hold of southern Brazil yet again until another front moves through this weekend. Models disagree, but could linger that front in the region next week, which would be helpful for filling corn and soybeans. Widespread precipitation elsewhere continues to favor later-planted soybeans, but is delaying harvest a little. If the wetness continues too long, it may push back the safrinha (second-crop) corn planting schedule, which would not be an ideal scenario for the crop.

MORE RAIN FOR ARGENTINA

A couple of fronts will move through Argentina during the next several days, which will bring through more precipitation for developing soybeans and corn, adding to good totals from last week. Early planted corn which is filling will only be stabilized by the showers. Should amounts disappoint, the region would likely have to wait until the middle of next week for the next chance of rain. If the forecasts hold, stabilization of the corn and soybean crops are likely, but a stark turnaround may not occur.

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

(c) Copyright 2023 DTN, LLC. All rights reserved.