As rain hampers planting efforts in the United States, analysts grapple with the 'domino effects' on crop prices.

Cory Jacobs Crop Extension Specialist, "Flooding across the U.S. agricultural belt continues to affect the planting of key crops in that country, something that could help some Canadian farmers fetch better commodity prices. New data this week revealed several states are well behind schedule for planting thanks to the rain, with more wet weather in the forecast for some regions."

"Some of the greatest concern is over corn and soybeans." Jacobs goes on to explain, "As the week began, only 49 percent of corn crops in 18 key states had been planted when more typically it might be 80 percent. Less than a fifth of soybeans had been planted when it might normally be closer to half, according to the United States Department of Agriculture."

While it's still too early to tell if the poor conditions will persist or exactly how crop yields will be affected, the impact of the flooding is already rippling into the market. 

Corn and soybeans are key to the American farm sector, as corn is widely used in grocery products, animal feed and fuel. Soybeans are a leading agricultural export in the U.S., worth $22 billion US in 2017. Though the outlook for both crops could improve in the coming weeks if the weather doesn't start to co-operate many factors come into play.

For example, the Wall Street Journal reported this week that the July contract for U.S. corn recently climbed by 13 percent in just seven sessions.

Canada exports only a fraction of the corn and soybeans that its southern neighbor does'

Jacobs goes on to say farmers on the Prairies could benefit from what he calls the "spillover" effect. "While poor weather has had an adverse effect in parts of Ontario, generally, seeding progress in Western Canada has not been far outside what farmers might expect at this time of year."

"Where there may be a more direct impact for Canadian farmers is on wheat, he added. There are concerns about the impact heavy rain has had on the U.S. winter wheat crop and the planting of spring wheat," he said. "Wheat prices have been improving in Western Canada over the last couple of weeks. Wheat prices also move up and down with corn because some grades of wheat compete with corn as livestock feed."

Some believe canola prices could get a small lift if soybean prices rise. Canadian canola farmers are already feeling pressure because of China's boycott of the crop. If soybean prices improve, it could also drag canola prices up "a little bit," Jacob's said.

"It will take weeks or even months for the situation to unfold as farmers, traders and analysts get a clearer picture of the impact on the number of acres planted and the health of those crops."