The drought across the US continues to
cause havoc, driving agricultural
commodities prices higher. Corn futures
hit a record this week, 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.
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Corn:
percentage of crops in
"good" or "excellent"
conditions (source: USDA) |