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Markets react to drought and disease pressure in crops

Markets react to drought and disease pressure in crops
Sep 02, 2025
By Denise Faguy
Assistant Editor, North American Content, Farms.com

Ohio experienced the driest August in 133 years, and other regions record driest in over 150 years

On the weekly Ag Commodity Corner+ Podcast, hosted by Farms.com Risk Management’s Chief Commodity Strategist Moe Agostino and Commodity Strategist Abhinesh Gopal, the focus was on the markets during the week of August 26 to 30, when US agriculture faced mounting challenges from weather and disease.

Corn futures closed higher, with December contracts ending at $4.20, above the short-term ceiling of $4.17.

Soybean oil prices weakened, weighing on canola, while livestock markets showed strength. Lean hogs rallied after USDA confirmed ongoing health concerns, and cattle reached new record highs.

The most urgent issue discussed by the two experts was the drought spreading across the eastern Corn Belt. Ohio experienced its driest August in 133 years, and some regions recorded drought conditions ranking among the driest in over 150 years. Experts suggested this pattern may signal the start of a long-term drought cycle.

At the same time, crop diseases such as southern rust and anthracnose are affecting yields. Fields without fungicide protection reported greater damage, reducing crop quality.

Agostino and Gopal warned that USDA’s September crop report could still show high yield estimates, but actual numbers may fall, once weight and quality are measured in October or even January.

In Canada, StatsCan’s July production report projected 19.9 million metric tons of canola, though farmers reported highly variable yields across the Prairies. Ontario and Quebec crops were also hit by drought, with many fields producing below the 10-year average. Read the article 2025 Canadian Farming Outlook Reveals Mixed Results.

Trade tensions with China remain another pressure point. US soybean export commitments are nearly 30% behind last year, with China largely absent from purchases. Agostino and Gopal suggested that some sales labeled as “unknown” may still be destined for China through indirect routes. Corn exports, by contrast, are strong, nearly doubling last year’s pace.

The podcast closed with updates on managed money positions, noting fund buying in corn and soybeans, while canola continued to see liquidation. Overall, the week showed how weather, disease, and global trade are shaping the outlook for North American farmers.

For daily information and updates on agriculture commodity marketing and price risk management for North American farmers, producers, and agribusiness visit things; Farms.com Risk Management Website to subscribe to the program.

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