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Weather outlook points to stable global grain and oilseed production
Western Europe faces persistent dryness, while the US Midwest weather has avoided extreme heat for long enough periods to cause major production damage.
World Grain reports that, despite a Northern Hemisphere summer that has fallen short of ideal, there is little sign of a serious decline in grain and oilseed storage levels. The outlet attributes the steadier outlook to better-than-expected production potential in China and India.
The report says Western Europe is struggling with chronic dryness, with eastern parts drying notably as well. In the US Midwest, earlier worries about a wet and cool spring have eased, with rain occurring routinely and temperatures not staying at extremes long enough to cut production deeply.
World Grain notes that July hot, dry weather concerns in the northwestern Corn and Soybean Belt were tempered by timely rain events that kept crops viable. While yields may decrease in that northwestern area, the outlet says the loss should not be significant enough to disrupt overall supply expectations or trigger a panic.
Looking ahead, the source says prospects for adversity through the end of August appear low, except for some soybean, sorghum, and cotton areas in the Delta and especially the southern US Plains where dryness is present. For China, occasional bouts of dryness and excessive rain with flooding have not likely affected production materially, while India’s monsoon improved in July, with sufficient soil moisture supporting summer grain and oilseed areas, according to World Grain.
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