Drought Conditions for Corn

​The 2021 corn futures complex are now largely trading in the $5.60-$5.70/bushel price range on the back of the USDA’s latest cut to corn conditions across the Heartland. We also had strong export volumes last week which has provided support to the morning’s rally. 

​This week has been a week of blistering heat and dry weather but this hasn't derailed the pollination progress as silking rates increased 17% from the previous week to 79% complete as of July 25. About 18% of the nation’s corn crop has reached the dough phase of maturity, up 10% from the previous week and 1% ahead of the five-year average. However, it might be too early to gauge the impact of heat stress on the pollination process. The USDA report showed nationwide corn ratings 1% lower on the week to 64% good to excellent. The trade had expected this to fall between 64% and 66% good to excellent.

Drought conditions continue in the Upper Midwest, Plains, and Pacific Northwest cand there are reports of short to very short soil moisture levels in the regions over the past week. While there have been scattered rain showers over the past week and this benefited some fields in the Midwest, many radar screens did not show true rainfall amounts. Its just too hot and there's not enough rain.