Excerpt from the note that went out to Weather Trends clients yesterday (Monday) morning:

In light of the softer market regarding futures prices, extreme heat across the corn belt this week should add some strength to the sector with widespread warmer temperatures and a drier pattern in the southern belt for several days potentially limiting yields.  With season to date weather now figured into our models coupled with the forecast weather through harvest, the WTI outlook for US corn (18 major states) is for 2011 yield numbers to come in just above trend line (7 year) yields.  We also feel that USDA crop numbers will start to reflect these limitations on the crop. 

 

this morning’s September chart below