Core Insights - The latest USDA drought report indicates that various major agricultural regions in the U.S. are experiencing drought conditions ranging from moderate (D1) to extreme (D3) as of July 15, 2025, significantly impacting grain, cash crops, and livestock [1] Grain Sector - Durum Wheat: 41% of the production area is under drought conditions, unchanged from the previous week, but up 35 percentage points year-on-year [3] - Spring Wheat: 36% of the production area is under drought conditions, an increase of 1 percentage point from the previous week and up 28 percentage points year-on-year [4] - Winter Wheat: 30% of the production area is under drought conditions, an increase of 4 percentage points from the previous week and up 6 percentage points year-on-year [5] - Corn: 9% of the production area is under drought conditions, a decrease of 3 percentage points from the previous week but up 4 percentage points year-on-year [6] - Soybeans: 7% of the production area is under drought conditions, a decrease of 2 percentage points from the previous week but up 2 percentage points year-on-year [7] - Barley: 59% of the production area is under drought conditions, unchanged from the previous week but up 33 percentage points year-on-year [8] - Sorghum: 7% of the production area is under drought conditions, unchanged from the previous week but down 14 percentage points year-on-year [9] - Rice: 1% of the production area is affected by drought, unchanged from the previous week and the same as last year [10] Cash Crop Sector - Cotton: 3% of the production area is under drought conditions, unchanged from the previous week but down 16 percentage points year-on-year [11] - Peanuts: 1% of the production area is under drought conditions, unchanged from the previous week and down 14 percentage points year-on-year [12] - Sunflowers: 8% of the production area is under drought conditions, unchanged from the previous week and up 5 percentage points year-on-year [13] - Sugarbeets: 39% of the production area is under drought conditions, unchanged from the previous week and up 36 percentage points year-on-year [14] - Sugarcane: 30% of the production area is under drought conditions, unchanged from the previous week and up 30 percentage points year-on-year [15] Livestock Sector - Hay: 18% of the production area is under drought conditions, a decrease of 1 percentage point from the previous week but up 2 percentage points year-on-year [16] - Alfalfa Hay: 30% of the production area is under drought conditions, a decrease of 1 percentage point from the previous week and up 13 percentage points year-on-year [17] - Cattle: 15% of the production area is under drought conditions, a decrease of 1 percentage point from the previous week and unchanged year-on-year [18] - Sheep: 29% of the production area is under drought conditions, unchanged from the previous week and up 9 percentage points year-on-year [18] - Milk Cows: 22% of the production area is under drought conditions, an increase of 1 percentage point from the previous week and up 10 percentage points year-on-year [19] - Hogs: 4% of the production area is under drought conditions, a decrease of 2 percentage points from the previous week and down 3 percentage points year-on-year [19]

Core Insights - The latest USDA drought report indicates that significant drought conditions are affecting major agricultural regions in the U.S., with moderate to severe drought levels reported as of June 3, 2025 [1] Grain Sector - Durum Wheat: 41% of the production area is affected by drought, a decrease of 38 percentage points from the previous week but an increase of 36 percentage points from the same time last year [3] - Spring Wheat: 19% of the production area is affected by drought, down 10 percentage points from the previous week and up 16 percentage points from last year [4] - Winter Wheat: 12% of the production area is affected by drought, down 4 percentage points from the previous week and down 4 percentage points from last year [5] - Corn: 21% of the production area is affected by drought, a decrease of 2 percentage points from the previous week and an increase of 19 percentage points from last year [6] - Soybeans: 16% of the production area is affected by drought, down 1 percentage point from the previous week and up 15 percentage points from last year [7] - Barley: 24% of the production area is affected by drought, down 4 percentage points from the previous week and up 17 percentage points from last year [8] - Sorghum: 15% of the production area is affected by drought, down 7 percentage points from the previous week and down 30 percentage points from last year [9] - Rice: 2% of the production area is affected by drought, down 1 percentage point from the previous week and down 5 percentage points from last year [10] Economic Crops - Cotton: 6% of the production area is affected by drought, down 1 percentage point from the previous week and unchanged from last year [11] - Peanuts: 2% of the production area is affected by drought, unchanged from the previous week and last year [11] - Sunflowers: 8% of the production area is affected by drought, down 12 percentage points from the previous week and up 5 percentage points from last year [11] - Sugarbeets: 21% of the production area is affected by drought, unchanged from the previous week and up 21 percentage points from last year [11] - Sugarcane: 49% of the production area is affected by drought, unchanged from the previous week and down 1 percentage point from last year [11] Livestock and Feed - Hay: 19% of the production area is affected by drought, down 1 percentage point from the previous week and up 12 percentage points from last year [12] - Alfalfa Hay: 27% of the production area is affected by drought, down 3 percentage points from the previous week and up 17 percentage points from last year [12] - Cattle: 21% of the herd is located in drought-affected areas, down 2 percentage points from the previous week and up 11 percentage points from last year [12] - Sheep: 25% of the herd is located in drought-affected areas, down 1 percentage point from the previous week and up 17 percentage points from last year [12] - Milk Cows: 15% of the herd is located in drought-affected areas, down 3 percentage points from the previous week and up 10 percentage points from last year [12] Analysis and Outlook - The drought conditions are expected to significantly impact major crops like corn and soybeans, which are crucial for both domestic and global markets [15] - While cotton's economic impact is relatively minor, the drought could still affect related industries [15] - The drought's effects on livestock, particularly cattle and sheep, may lead to increased production costs in the livestock sector [15] - Other crops such as barley, sorghum, sugarbeets, and sugarcane are also experiencing drought impacts, which could disrupt global supply chains [16]