Crop Conditions Not Driving Commodity Prices Amid Ongoing Middle East Tensions

Commodity prices have remained relatively stable despite hot and dry weather conditions in key agricultural regions. According to John Hall, a professional commodities analyst, crop conditions are not driving prices at present. In fact, Sept. corn closed at $4.37, while new crop Dec. corn closed at $4.59, down a dime for the week.

August beans closed at $11.53, while new crop November beans closed at $11.74, down 13 cents for the week. This stability is partly due to China's continued purchase of US soybeans under the trade deal made last fall, which are already priced into the market.

The real driver behind commodity prices is crude oil, with September Crude closing at $75.88 and December Crude at $72.34 a barrel, down from previous weeks. Hall attributes this to the ongoing tensions in the Middle East, particularly between Iran and the US.