Corn prices -nearby futures
Soybean prices - nearby futures
This has been the seventh driest in history since 1895. It could be the warmest July in 117 years. Worst crop conditions for the week of July 8 since the big drought of 1988. Output for corn was cut 12 percent The soybean crop will be the smallest in four years.
The weather shock has hit the Midwest sharply and there is nothing famers can do. Is this an over-reaction? With the crop size fairly uncertain, commercial buyers have no choice but to gather as much grain and beans as possible to protect against further shortages. There is no new corn coming on the market until Latin America harvest. This talk may seem premature but but the potential crop shortfall is ill-defined.
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