Europe's Drought Impact on Grain Futures to be Revealed in Upcoming WASDE Report

This summer's extreme price volatility in grain futures has been driven by drought conditions in Europe that have impacted corn and wheat crops.

The severe drought in France and Germany resulted in a rally in early July, as fund traders exited short futures positions due to the potential for smaller global production.

Cooler temperatures and better rain chances in the Midwest brought the rally to an end in late July, with grain futures prices falling into month-end.

The upcoming August 12 USDA WASDE report will provide crucial information on U.S. corn and soybean yields, as well as global supplies of wheat.