Rallies in corn and soybean prices were limited by forecasts of more rain, despite an influential private report indicating severe drought damage to the crops.

Fears of drought damage have underpinned a dramatic rally in the coffee market in the last month.

It may also be that the benefit of this winter's snow cover will offset last summer's serious drought damage.

But drought damage to some root systems, especially those of young woody plants and herbaceous perennials, may not be visible for quite some time.

And the problem has even reached eastern Colorado, which did not suffer drought damage of 1988, said Chuck Hudson, a state agricultural statistician.

Any obvious bare spots, where there was serious drought damage, should be reseeded.

The next official estimate of the drought damage will be the Agriculture Department's next crop report on Aug. 11.

"There still are underlying concerns about the Brazilian coffee crop due to drought damage."

Corn prices soared the daily trading limit as long-range weather forecasts fanned fears of drought damage.

It may also be that the benefit of the snow cover this winter will offset the serious drought damages of last summer.