Corn Crop Plunges 4%, Worst Single-Week Decline in Three Years

The U.S. corn crop is facing severe damage due to high temperatures and drought in the Midwest agricultural belt, sparking concerns over global food supply and inflation.

According to the latest Crop Progress report by the USDA, the percentage of the U.S. corn crop rated 'good' or 'excellent' condition plummeted 4% from 67% to 63% for the week ending July 28.

This marks the largest single-week decline in nearly three years and falls short of market analysts' expectations.

The primary driver behind the deterioration is persistent heat waves and insufficient rainfall, accelerating soil moisture evaporation and posing a severe threat to corn crops during their critical pollination stage.

Market analysts warn that if significant rainfall does not materialize within two weeks, crop condition ratings could fall further, directly impacting autumn harvest yields.