US Weather Improves, Markets Eye Global Conflicts
Weather prospects in the US have improved, leading to lower crop futures on the Chicago Board of Trade. Despite this, several factors could provide support for markets.
The USDA reported that corn and soybean crops dropped four and three points, respectively, to 63% good to excellent as of July 26. However, 14-day weather forecasts indicated a decrease in hot and dry conditions, with rain arriving in the Upper Midwest over the past two days.
Terry Reilly, a Chicago-based independent analyst, stated that 'for the heart of the growing areas for corn and soybeans, on a day-by-day basis, (the weather) continuously improves.' He expects yields to remain at the USDA's current projections or above.
Reilly anticipates choppy trade in the coming days due to numerous issues at home and abroad, including the US-Iran conflict and potential impacts from Russia's wheat exports.