The
drought across the US continues to cause havoc, driving agricultural commodities prices higher. Corn futures hit a record today, exceeding the 2008 highs.
 |
| Corn futures |
Reuters: - The hot, dry weather prompted analysts to reduce corn yield
estimates, pointing to a smaller crop in the world's No. 1
grower than had been expected. In a Reuters poll Tuesday - the
day after the U.S. Department of Agriculture (USDA) reported on
crop conditions - analysts on average pegged the U.S. corn yield
at 153.4 bushels per acre, down from 157.3 bushels a week ago.
The USDA on Monday slashed its condition rating for U.S.
corn to 48 percent good-to-excellent, down 8 percentage points
from a week earlier. It pegged the soybean crop at 45 percent
good-to-excellent, compared with 53 percent a week ago.
The forecasters are predicting some relief from the heat wave coming soon, but the damage may already have been done. As the chart below shows, corn crop conditions have deteriorated rapidly in recent weeks and the futures prices are reflecting it.
 |
| Corn: percentage of crops in "good" or "excellent" conditions (source: USDA) |
SoberLook.com
