Corn conditions moved slightly higher while soybean conditions dipped in the last week, the latter likely because of crop damage inflicted by warmer-than-normal temperatures in the last week.
Monday's USDA-NASS Crop Progress report shows 70% of the nation's soybean crop is in good or excellent condition, down 1% from a week ago. At the same time, 73% of the corn crop is rated good or excellent, a 1% increase from last week. A year ago, 59% of the nation's corn and 58% of the soybean crop was rated good or excellent, according to Monday's report.See more from Monday's report
Though the lower soybean number is likely an anomaly because of the timing of USDA's field survey work contributing to the report, both that number and the one for corn conditions will likely cause some market reaction in the overnight trade, says Kluis Commodities market analyst and broker Al Kluis.
"The central Corn Belt has a really good crop. Iowa is rated 75% ge, Illinois is rated 82% and Missouri at 83% ge. The lowest ratings are in Kansas and Minnesota. Corn denting is at 35%, a full 8% below the five year average. The best [soybean] crops are in the central Corn Belt and the problem areas are out west and up north. Note that this survey was taken before the widespread rain this weekend," Kluis says. "Today's report is a negative for prices tonight. I expect corn to start out 1 cent lower tonight. Today's report is likely to take [soybean] prices a little higher tonight."
