All Eyes Are On The Weather In Grain Markets

Grain markets have rallied over the past two weeks on fears that dryness in parts of the U.S. grain belt will persist well into July, which could negatively affect corn pollination and reduce yields. To be sure, timely rains could turn markets around and quickly push prices to lows not yet seen in 2023, but each day without rain at this time of year could negatively affect the amount of grain, especially corn, ultimately produced this growing season.

In its latest World Agricultural Supply and Demand Estimates (WASDE) report issued June 9, 2023 the USDA predicted a record corn yield of 181.5 bushels per acre, resulting in a large estimated increase in ending corn inventories versus last year of 805 million bushels, to 2.257 billion bushels, a stunning 55 percent increase in end of crop year corn stocks.