AUDIO: Don Roose, President of U.S. Commodities (Interviewed Thursday July 20)
Crop conditions continue to worsen across much of the state due to extreme heat. Grain Analyst and President of U.S. Commodities in Des Moines Don Roose says the weather continues to drive commodity markets.
?It?s a dicey situation. We think the crop is getting smaller week by week so we need a weather pattern change which we don?t see as of yet,? Roose says.
We have big supplies in the U.S., in the world, particularly in Argentina and Brazil. Those areas buffering us so far and keeping us from rallying. But Roose says if yields go to lower we?ll overcome that.
The crop progress reports each week also continue to get worse. This past week was the fourth week in a row the USDA has dropped crop ratings.
?Crop ratings continue to slip week by week so we are really looking for a stabilization in those. For those to stabilize, the weather will have to change. We are inching closer to the August crop report and that is a real survey report. We could see harvested acres drop a bit from abandonment from corn and soybeans up in the Dakotas,? Roose says.
National Weather Service forecast for central Iowa shows no chance of rain until Wednesday and that?s only a 30 percent chance. USDA releases their updated weekly crop progress report this afternoon.
