The dry weather impacting much of the Corn Belt led to USDA reducing their estimated corn yield. USDA Chief Economist Joe Glabuer stated this shouldn’t come as a big surprise. On June 1st, 13% of the Corn Belt was in drought conditions compared to 60% now.
USDA reduced the yield about 12% from their earlier estimate. Glabuer says they reduced the corn yield to 146 bushels an acre.
Glabuer says it also should come at no surprise this year will be a weather market and the extended weather forecast is not favorable for crop development.
USDA adjusted their price estimates for July, up about $1.30 at the mid-point which is around $5.90.