A warm and dry August, especially in the western Corn Belt, has lowered production estimates for this year’s crops. These lowered estimates have resulted in a preharvest price rally that has moved prices for Iowa corn and soybeans off their mid-August lows (see charts). Excellent planting weather in the spring as well as the warm, dry August has helped crops mature weeks ahead of normal and points to an early harvest. In the livestock sector, large production streaming out of feedlots and finishing barns coupled with slipping demand has resulted in larger-than-normal seasonal price drops and, in some cases contra-seasonal price declines.