Weather, Geopolitics Continue to Drive Grain Markets

Grain markets remain focused on U.S. weather forecasts and geopolitical developments as traders weighed strong crop conditions against concerns about global energy supplies. Corn and soybean futures traded lower Wednesday amid expectations for favorable weather across much of the Midwest during key crop development stages. Analysts said forecasts calling for moderate temperatures and periodic rainfall could support yield potential as corn moves through pollination and soybeans continue pod development. At the same time, rising tensions in global trade and energy markets helped support crude oil prices, creating mixed signals for agricultural commodities tied to biofuel demand. USDA this week rated 74% of the nation’s corn crop and 70% of soybeans as good or excellent, among the strongest ratings for this point in the growing season in recent years. Market participants remain focused on August weather patterns, which historically have a significant influence on final crop yields and production estimates ahead of harvest.