Corn: The U.S. Climate Prediction Center updated its three-month outlook today and the results sent corn and soybean futures prices rallying during today’s trading session. Corn prices soared 4% higher – a $0.13-$0.24/bushel daily increase – as the extended forecasts are trending warmer and dryer as the peak pollination period approaches for developing corn crops.
Despite dry weather over the past month or so in the Corn Belt, this outlook is likely the most significant drought news that the corn and soybean markets have seen so far this year because it is so close to the time in the respective crop’s development in which the plants need the most water, nutrition, and moderate growing conditions to produce their kernels and pods.
The good news is that an above-average chance for moisture continues to settle over the Plains over the next few, which have been battered by severe drought conditions over the past several years. But with persistent heat plaguing most of the Upper Midwest, Eastern Corn Belt, and Southern Plains during the peak summer months, crops across the Heartland could face significant struggles to reach yield potential without more moderate temperatures and an abundance of moisture.