"We Need Rain": Corn, Soy, Wheat Prices Soar As Drought Conditions Worsen In Midwest

Corn, soy, and wheat prices have been soaring this month as growing conditions across the Midwest, a top-producing crop region, have rapidly deteriorated due to the lack of rainfall.

US corn crop rated good to excellent slid to 55% in June, the lowest for this time of the growing season since 1992, reported Bloomberg. 

🇺🇸U.S. #corn conditions fall to 55% good/excellent as of Sunday, below the trade guess of 58% and down from 61% a week earlier. That is the week's lowest since 1992 and the lowest for any week in June or July since 2012. Illinois corn to 36% GE from 48% a week earlier. pic.twitter.com/adLJL0GPWi

— Karen Braun (@kannbwx) June 20, 2023

"I'm very concerned about the weather," said Sherman Newlin, who grows corn and soybean in Illinois. He said persistent "low humidity, 90-degree temperatures and now the wind is sucking the moisture out of crops really fast." 

Beautiful example of rootless corn syndrome from drought stress. Rarely seen, but unfortunately quite common for corn planted in May. https://t.co/qSSUMcqWbE

— Doug Meyer (@NebGradDubDub) June 16, 2023

We need rain The no till bean in last yrs corn stover is beginning to look like bean field However if u observe a bean plant up close u c colorations that results fr drought. 95 of our99 counties r in some stage of drought #soybeanwatch pic.twitter.com/Shk5V8fZHx

— Chuck Grassley (@ChuckGrassley) June 17, 2023

I believe the dry land won't make it through the week. pic.twitter.com/1Vqhte4ULK

— Dale Hanson (@HansonFarms1991) June 19, 2023

There years in a row in June we have had drought conditions and leaf rolling in corn at our Irvington TD Focus Site. ⁦@Randy_cornguy⁩ ⁦@DKAS_SIL⁩ ⁦@ChannelSeedILL⁩ ⁦@StoneSeedIL⁩ pic.twitter.com/bKJ4IEaAgM

— Randy McElroy (@Randy_cornguy) June 20, 2023

Corn growing conditions have been terrible in Illinois, the second largest US producer. About 36% of the state's crop was rated good to excellent for the week ending June 18, down 12 percentage points versus the prior week. 

"I was shocked at the big drop in Illinois ratings," Newlin said. "I knew we were bad, but: Wow."

The latest U.S. Drought Monitor Map reveals Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio, and Wisconsin, often called the "Corn Belt" states, are experiencing "moderate drought" to "exceptional drought." The timing of the worsening drought could stress young plants. 

We've outlined for readers the worsening drought situation and its subsequent effect on crop price volatility:

• Wheat Spread Hits Record As Drought Plagues Midwest
• US Corn Crop Deteriorates After Midwest Hit By Worst Drought In Decades
• Kansas Wheat Harvest Will Be The Smallest Since 1957 And US Corn Is Being Absolutely Devastated By Drought

"There's little sign of relief for crops in the forecast," Bloomberg wrote in a note. 

Prices of wheat futures are up 20% on the month. Soy futures are up 14%. Corn futures are up 13%. 

The official summer start was Wednesday, which will coincide with hotter and drier days. 

Bloomberg warned: "Without substantial rain in the next month or so, the consequences could be dire, with farmers abandoning their fields and the harvest plunging."