US drought fears cause grain price spike
The ongoing heat and dry weather currently being experienced in many vital US corn producing regions has led to a spike in prices after months of decline.
While the looming threat of the heatwave on crops in the Midwest and Great Plains regions also led to increases in wheat, soybean prices remains firm.
Updated weather forecasting models pointed to warmer and drier weather across the Midwest during the next three to five days - with 'drought conditions' already an imminent prospect in some areas.
Updated crop observations this week confirm that soybeans are suffering more than corn from late summer heat and dryness.
"The past 14 days have been incredibly dry," said Gail Martell of Martell Crop Projections. As a result, she noted that crop projections have been falling.
"Illinois crops deteriorated sharply last week, reflecting worsening drought. Corn and soybeans lost 5% in the good-excellent category while gaining 2-3% in poor-very poor."
Martell said that Ohio remains the only major Midwest farm state with, 'favorable' prospects - with 74% good-excellent in soybeans and 80% in corn.
Prices for corn reached a one-month high of $5.0812 a bushel on earlier this week, while soybean prices also spiked at a one-month high of $14.0937 a bushel.