3. The latest U.S drought monitor showed that 70% of the U.S. corn crop and 63% of soybeans across the U.S. are covered in drought up 6% for both vs. a week ago. Despite the rains last weekend, the drought continued to spread in Illinois with severe drought at 59% up 28 points. As I mentioned above, areas in the U.S. are reaching 120 degrees! which won’t help the drought situation in the slightest. Any light rains in the forecast will be almost irrelevant with temperatures this high. which won’t help the drought situation in the slightest. The drought monitor map will be updated on Thursday, July 6th. Expect to see increased areas affected by the more extreme drought levels.
4. Monday, July 3rd, will also see an early close for the grain markets to celebrate Independence Day on Tuesday, July 4. Markets will close at 1:00 p.m. ET on July 3rd, and will remain closed for Tuesday July 4th and reopen on Wednesday July 5th, 2023. The U.S. weather outlook on Sunday night July 2nd, 2023 and again on Tuesday night on July 4th, 2023 will be all important for markets when they reopen on July 5th, 2023.
5. The July 2 to 6, U.S. precipitation forecast shows an above normal amount of rain throughout the U.S. Midwest during the start of the critical U.S. corn reproductive stage. Funds have already baked in this news with a lower week, but we are not back to trendline yields. These rains will be crucial for subsoil moisture levels as many states are worse than 2012! Illinois now stands at 86% short-very short, Iowa at 68%, and Indiana not far behind at 65% short-very short.
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