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| Source: Intellicast.com |
After what happened last summer (see post), this is particularly an unwelcome development. Crop conditions have been decent through early August, but all that is about to change.
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| Corn crop conditions by years (source: USDA) |
Agriculture.com: - Crop conditions in many key areas may be going from bad to worse in the next few days. Temperatures will scrape the triple-digits around the nation's center to begin this week. With the exception of a quick pass-through by a "weak cool front" bringing some spotty showers later in the week, the weather will remain hot and dry for the next week and a half or so, forecasters say.
Prices on soy, corn, wheat, and other grains spiked this
morning as a result - with the soy crop being particularly
vulnerable at this stage. Here are the most active contracts
for corn and soy.
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| Source: barchart |
This does not bode well for emerging economies who import some of these products and have recently experienced significant currency depreciations.
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