by Tyler Durden
Crop conditions for soybeans and corn have worsened in the latest US crop tour results which confirmed that hot, dry weather this summer has affected crops.
According to the US Department of Agriculture’s (USDA) latest crop round, soybeans in good to excellent condition are down three percentage points from the previous week to 57%. The number missed analysts’ estimates of 60%.
The USDA found that corn in the same condition fell 2 percentage points to 62%, missing expectations of 64%.
Data show that this summer giant Successive heat waves across the US Northwest and Midwest are negatively affecting crops. The latest drought monitoring data shows that the western United States continues to experience severe drought.
Last week, the US Department of Agriculture Estimated agricultural supply and demand in the world (WASDE) View Report Reduced grain supplies would keep food inflation high.
The closely watched Supply and Demand report lowered estimates of corn production and stocks. Global stocks of wheat are reported to be near their lowest level in five years.
Chicago soybeans and corn prices have risen over the past several days after WASDE.
Chicago wheat rises for a fourth day and trades near a decade high, after a WASDE report showed that global stocks were close to a five-year low.
The Bloomberg Grain Index is up 81% since the start of the virus pandemic.
Diminishing crop yields and stocks due to adverse weather conditions means that food inflation will continue well into 2022.
…and what does all this mean for the average consumer? Well, grocery prices are expected rushes strength later this year.