Crop Tour Update and Market Recap

The recent heat wave may contribute to increased volatility in commodity markets, particularly affecting soybeans which are in the reproductive stage and could lead to higher prices, while corn is expected to require deeper yield reductions to see significant price increases, and wheat prices are expected to continue struggling.

Farmers in the Corn Belt and Delta Region are experiencing extreme summer heat, which could benefit corn but be stressful for soybeans and cattle, affecting crop yields and market prices.

Scouts on the Pro Farmer Crop Tour are concerned about the impact of high heat and limited moisture on the corn crop in Nebraska, while corn yields in Ohio and South Dakota are estimated to be higher than last year.

Scouts on the 2023 Pro Farmer Crop Tour reported high temperatures and varying crop conditions, with some regions seeing improvements from last year's drought while others suffered from lack of moisture and heat stress. Diseases such as tar spot and sudden death syndrome were also concerns, but overall soybeans performed well despite the challenges.

Soybeans were the strongest performer in the grain market this week, while corn prices faced disappointment and struggled to break through resistance levels. The Pro Farmer Crop Tour indicated lower yields for both corn and soybeans compared to USDA estimates, potentially leading to higher prices if adjustments are made in the September WASDE report.

Extreme heat and drought have caused damage to soybeans and corn crops, leading to lower yield and production estimates by Pro Farmer and potential higher prices in the future.

Analysts expect the upcoming U.S. Department of Agriculture (USDA) estimates to show smaller corn and soybean crops due to falling yield prospects caused by dry and hot weather conditions.

Dry weather and unfavorable growing conditions in Iowa and Illinois have led to reduced yield expectations for soybeans and corn, with the latest dry spell preventing maximization of yields and causing some crops to shut down.

Yield potential for Crop Watch corn and soybeans in the U.S. has slightly improved after weeks of decline due to drought conditions, but yields are still expected to be below last year's levels.