Midwest weather boosts corn and soybean markets

Aug 22, 2023

The US Midwest's climatic challenges have become the epicenter of global crop price movements. Corn prices skyrocketed this Monday, witnessing a one-week pinnacle, while soybeans, too, recorded a significant hike. Adding to the global market's tumult, wheat finds itself caught in the midst of Black Sea region tensions, causing supply shortages. 

In specific figures, corn’s contract on the Chicago Board of Trade witnessed an upward trend of 2.3%. Simultaneously, soybeans experienced a 1.7% growth. The forthcoming weather, marked by high temperatures and minimal rain, poses grave concerns for the crop yield. Particularly for soybeans, August is an essential month, marking a critical growth phase. 

The agricultural community eagerly awaits the findings of this week's Pro Farmer crop tour. This tour promises insights into the health of corn and soybean fields across the Midwest. The ongoing conflict between Russia and Ukraine is causing concern about the global grain supply. Both countries are major exporters of grain, and any disruption to their exports could have a significant impact on food prices and availability. 

In trading news, China's soybean dealings have undergone notable changes. A decline of 62% in imports from the US was recorded this July year-on-year. Brazil, on the other hand, saw a 32% upsurge in exports to China, bolstered by a productive harvest and attractive prices. 

Another region under weather distress is India, anticipating its lowest rainfall in August for over a century. This is partly attributed to the El Niño phenomenon. On a brighter note, French farmers are nearing their soft wheat harvest goal, with a 96% completion rate by the middle of August. 

Source : wisconsinagconnection
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