Heat Wave Sparks Grain Price Surge in Midwest

Corn and soybean prices have been trending up as an intense heat wave bakes the Midwest. The heat dome has settled over most of the region, causing corn and soybean crops to wilt and reducing soil-moisture reserves.

Last week, December corn (ZCZ26) futures prices closed steady at $4.87 1/2 but hit a two-month high early in the session. November soybeans (ZSX26) on Friday rose 9 3/4 cents to $12.53 1/2 and for the week gained 50 1/2 cents.

The bulls are expected to remain in control this week, but any significant changes in the Corn Belt weather forecast could derail the market rallies in grains. The recent rally in crude oil (CBU26) futures prices has played a part in the upside price action for the grains.

Grain traders will be keeping an eye on Monday afternoon's weekly crop progress report updates, especially the 'good to excellent' condition ratings for the corn and soybean crops. Soybean traders are also hoping China will continue to buy U.S. soybeans, as new-crop sales remain at their highest for this time of year since 2022.