Grains started the week with a negative tone following last week’s strong performance. In outside markets, crude oil was falling lower while the US Dollar was holding around the unchanged mark.
Brazil got spotty rains over the weekend which will take some of the steam out of early Brazil harvest. Any slowdown in Brazil’s soy harvest may lead to less second-season Safrina corn acres. The cut-off for planting of that crop is expected to be in the next 10 days. However, the next 10 days are expected to see widespread dryness. In Argentina, no emerging threats for weather seem to be in the cards.
In the US Southern Plains temperatures over the weekend hit the high 90s adding some stress to already parched soils. Rains are expected later this week in S Oklahoma and N Texas but not enough to favorably change the drought situation.
In India, there continues to be little rain to stem the drought concerns. Only a half inch of rain is expected this week in the most Northern part of the the country leaving the key central region dry. Some yield loss has already occurred in parts of India this year because of restricted rain in recent weeks. The biggest decline has been in central parts of the nation. Warmer temperatures later this week and next week will be a concern.
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