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Rain rain, don’t go away…

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Greg P
Greg P
Posted underCommoditiesEnergyFarmingFearFoodFuturesInflation
Drought conditions throughout the Corn Belt in the USA continue to worsen due to above-normal temperatures paired with little moisture, with nearly 55% of the contiguous US in some level of drought this week compared to 50% last week and 58% last year. The rain is forecasted to fall over the next seven days, but traders are waiting for the USDA to release its monthly crop production and WASDE reports, wherein yield projections for corn and soybean are expected to remain unchanged. The lack of change doesn’t mean that yield projections won’t come down at some point, especially since there are dry conditions in the Corn Belt. Accumulated corn sales are down 36% compared to the same period last year while net cancellations of new crop corn sales were made by Mexico, Honduras, and Guatemala. Despite this, the fundamentals remain bullish for the futures market.

TaggedCommoditiesCornCropsDroughtFarmingGrain Markets and other StuffJoe VaclavicRow CropsSoySoybeans

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