July 18, 2006

 

US crop progress wrap: corn, soy ratings decline slightly

 

 

US corn and soybean condition ratings released Monday (Jul 17) afternoon by the US Department of Agriculture declined less than had been expected by analysts and grain traders.

 

 

Corn

 

The USDA reported 62 percent of the US corn crop is in good-to-excellent condition, down one percentage point from last week. The trade had expected a 1 to 3 percentage-point decline in corn, while some analysts predicted the condition rating would remain unchanged if better conditions in the eastern Midwest offset the dryness in the western Midwest.

 

"When you look at the state breakdowns, you held or improved in major corn-producing states," said John Kleist of Kleist Agriculture in Arlington Heights, Ill.

 

Major corn-producing states improved or remained unchanged in the good-to-excellent range, with the Illinois crop up 4 percentage points at 67 percent good to excellent, and Indiana corn up 5 percentage points at 65 percent in the same category. The Ohio crop gained 2 percentage points at 70 percent good to excellent, and Iowa's crop remained unchanged with 68 percent with the same rating.

 

However, Kleist noted the good-to-excellent rating for Minnesota corn dropped 17 percentage points from the previous week to 52 percent.

 

Development of the US corn crop is running well ahead as silking averages indicate, Kleist said.

 

Silking progress is at 51 percent in the 18-state average, up 28 percent from last week. The average is 5 percentage points higher than last year at the same time and 13 percentage points above the five-year average.

 

"Obviously, the heat and dryness is pushing maturity," said Dan Basse, president of Ag Resources Co. "It's very important that we receive some significant rain in the next two weeks to prevent further deterioration."

 

 

Soybeans

 

US soybeans were rated 57 percent good to excellent, down one percentage point from the week prior. Analysts had expected a 1 to 3 percentage-point drop in soybean conditions.

 

Illinois soybeans increased 2 percentage points to 59 percent good to excellent, and the Indiana crop also increased 2 percentage points at 61 percent in the same category. Ohio crop conditions improved 1 percentage point to 61 percent, and Iowa soybeans remained unchanged at 67 percent in good-to-excellent condition.

 

Kleist again noted the drop in Minnesota's conditions, down 16 percentage points from the week prior to 52 percent rated good to excellent.

 

Sixty percent of soybeans are blooming, the USDA reported, up 22 percentage points from the week prior. The number is 1 percentage point down from 2005 and 12 percentage points over the average.

 

Sixteen percent of the US soybean crop is setting pods, up 9 percentage points from last week, according to the report. Kleist noted soybean development is ahead and it is still early in the growing season.

 

"Development has been rapid, but a cool down and more rains (as forecast) is just what the doctor ordered," said Kleist.

 

Temperatures are expected to drop Thursday after a cool front moves into the corn belt, according to meteorologists. By the weekend, the Midwest is expected to experience a drop in temperatures of 10-15 degrees from the past weekend, meteorologists said. Rain, however, is expected to be less common and scattered across the region, they noted.