Markets look to explode higher today as overnight maps enhanced heat and removed rains.
The health of U.S. corn and soybean crops deteriorated more than expected last week as temperatures heated up in key growing areas and stunted development of late-planted fields. After the market closed on Monday, the U.S. Agriculture Department's weekly crop condition report showed that the U.S. corn crop was rated 66 percent good to excellent, down 3 percentage points from the previous week. The decline in corn ratings was the biggest weekly drop in three years. Soybeans were rated 64 percent good to excellent, 1 percentage point below analysts' expectations and 2 percentage points below a week earlier. The 10-year average for this time of the year is 61 percent good to excellent, and USDA rated the crop 67 percent good to excellent a year ago. High temperatures in the 90s Fahrenheit or more along with high humidity were expected throughout the Corn Belt this week, but the high pressure ridge was seen breaking down on Friday, according to the latest forecasts. The crops, however, remain vulnerable to extreme temperatures. Severe heat during corn pollination, which normally occurs in late July, can diminish yields. Soybeans, which are also widely grown in the Midwest, are still a couple of weeks from their critical pod-developing stage, but the forecast for little precipitation in July is supportive for the market.