The impact of the heatwave hitting Europe has extended to agricultural crops, as corn prices surged after crops in France, one of the largest corn-producing countries in the European Union, were damaged by the hot weather.

Most Traded

The most traded corn futures in Chicago rose by about 2% today, after the French government announced that high temperatures had damaged about a third of its corn crop, while traders are also monitoring rising temperatures in the United States.

The market is also watching for any additional details regarding trade between the United States and China, following their initial agreement to include agricultural products in a framework for reducing mutual tariffs.

Heat Dome

At the beginning of last June, a severe heatwave hit Europe, likened to a 'heat dome,' affecting economic activities, disrupting transportation, and postponing school exams. The demand for cooling devices such as fans and air conditioners, which residents had not needed in previous years, increased, while the International Federation of Red Cross and Red Crescent Societies reported that this wave has turned into a matter of life and death for the most vulnerable groups.