US crops get kick along from much-needed rain

CROPS in the United States, previously on a knife edge, have received much-needed rain in the past week.

US crops get rain

CROPS in the United States, previously on a knife edge, have received much-needed rain in the past week.

Commonwealth Bank Agri-commodities strategist Tobin Gorey said the rain was just in time and had caused a price drop in the US.

“The real worry areas were where the hard red winter wheat is grown across areas of the high plains,” Mr Gorey said.

“Those areas were facing quite severe drought conditions. “The areas were in drought when the grains were planted, but they had very little snow so they didn’t get the moisture kick from the snow melt.”

However, rain in the past week has brought crops back from the edge.

Mr Gorey said the rain also led to a price drop, with the July Kansas wheat price falling about 100 cents a bushel from US$5.90 to US$4.90.

“The risk to the crop has receded and the price has fallen here (in Australia) in response to a lower global price,” he said.

“It’s about $276 now.’’