Heat Wave and Drought continue besiege deteriorated US crops

It keeps getting worse in the US Midwest, Corn and Soybean crops are deteriorating fast from the harshest drought in more than 50 yrs.

The weather will remain hot and dry for the next week in the western Midwest, though cooler temperatures and light rain in its east may provide some relief from relentless drought, an agricultural meteorologist said.

Record heat wave drives US belief in climate change to 70%

Since March there has been a rise in US citizens' that believe that climate change is taking place, especially among independent voters and those in Southern states such as Texas, which is now in its 2nd yr of record drought, according to nationwide polls by the University of Texas.

In a poll taken 12-16 July, 70% of respondents said they think the climate is changing, compared with 65% in a similar poll in March.

Those saying it's not taking place fell to 15% from 22% according to data set to be released Friday by the UT Energy Poll.

Following a Winter of record snowfall in Y 2010, the public's acceptance of climate change fell to a low of 52% , according to the National Survey of American Public Opinion on Climate Change, which was published by the Brookings Institution in Washington.

After this year's mild Winter, support rose to 65%, the same as that found by the UT Energy Poll in March.

The average temperature for the U.S. during June was 71.2 F(21.7 C), which is 2 degree higher than the average for the 20th Century, according to the National Oceanic and Atmospheric Administration.

The June temperatures made the preceding 12 months the warmest since record-keeping began in Y 1895, the government agency said. The US is also experiencing its worst drought since Y 1956, with 55% of the contiguous states in moderate to severe drought.

Soybean and Corn rise to record highs on US drought

US soybean rose to a record high, and front-month Corn marked an all-time high as weather maps showed no sign of an end to a drought that has damaged US crops and provoked concern about food supplies.
Soybeans are entering their pollination stage now later than Corn, and so the weather will be a bigger factor for Soybean in here.

US Livestock Market Snapshot

Live Cattle are expected to be mixed following Wednesday's sharp to limit gains, with feeder Cattle likely to face pressure from strength in the Corn market.

Live Cattle need to see follow through from yesterday's sharp to limit gains to signal a near-term low has been posted. But with the Aug contract at around a $5 premium to this week's cash trade, upside potential may be limited.

Some feedlots looking to clean up show lists are asking for $115, which compares to $113 sales earlier this week.

Weekly Beef export sales of 15,600 MT were down from the previous week, raising concerns about global demand.

Lean Hog futures are called mixed, with pressure limited by improvement in the pork cutout market.

The Pork market is showing more evidence of a near-term low being posted, as the cutout value rose 0.38 Wednesday to return above $90-per-cwt. But with packer margins still in the Red, cash Hog bids are called steady to lower again Thursday.

Strength in the grain market has traders scaling back their farrowing expectations, which tightens supply expectations for late this year into Y 2013.

Aug. lean Hog futures are trading at around a $3 discount to the cash index, which opens additional upside potential for the contract.

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.