US Crop Ratings Plummet Amid Hot and Dry Weather

The global grain market has been affected by hot and dry weather in the US, leading to lower crop ratings. According to the US Department of Agriculture, 63% of the country's corn crop was rated in good-to-excellent condition as of Sunday, down from 67% a week earlier.

Soybean ratings also declined to 63%, from 66% a week earlier. This has led to a slight increase in corn prices, with Chicago corn rising by 0.4% to $4.76 a bushel. However, soybeans have fallen sharply, tracking losses in oil prices.

The US Department of Agriculture's report also noted that ratings for both crops were below the average analyst estimate. Oil prices fell 1% due to market participants weighing a pause in US strikes on Iran, which has raised hopes of a diplomatic solution to the conflict and normalisation of Middle East energy flows.