August 29, 2006

 

US crop progress wrap: corn, soy conditions little changed

 

 

The US Department of Agriculture reported Monday (Aug 28) afternoon that US corn conditions slipped one percentage point in the good-to-excellent category from last week's level while US soybean conditions improved by one percentage point a from week ago in that category.

 

 

Corn

 

Fifty-seven percent of the US corn crop is rated in good-to-excellent condition, down one percentage point from a week ago and slightly lower than the unchanged conditions expected by analysts.

 

Corn is starting to show some deterioration because it's a normal part of the progression of the crop and not a loss of yield potential, said Shawn McCambridge, senior grain analyst at Prudential Financial.

 

In key US growing state Iowa, 65 percent of the crop was rated in good-to-excellent condition, unchanged from the previous week. Illinois' corn crop was rated as 69 percent good-to-excellent compared to 70 percent a week ago.

 

The percentage of the crop in the dough stage is now 93 percent, up from 82 percent last week and above the five-year average of 84 percent. Sixty-five percent of the crop is in the dent stage, up from 44 percent a week ago.

 

The crop is 12 percent mature, above the 10 percent reported last year and the five-year average of 11 percent.

 

The real issue is that the crop is racing toward maturity, said Don Roose, president of US Commodities in West Des Moines, Iowa.

 

As it races to maturity, Roose said, the question is whether it is at the expense of yields. Because of those concerns, the report was slightly friendly to the market, with a spin to the positive side, he added.

 

 

Soybeans

 

The USDA reported that 59 percent of the US soybean crop was in good-to-excellent condition, up one percentage point from a week ago and in line with analysts' expectations of a one-to-two percentage-point increase.

 

Large producing states Illinois and Iowa saw small changes in conditions. Illinois soybeans are rated 70 percent in good-to-excellent condition, up one percentage point from the previous week, while Iowa's good-to-excellent rating fell one percentage point to 69 percent.

 

The market was looking for ratings to go up one-two percentage points, and it went up one percentage point, said Roose. "The moisture continues to aid the soybeans," Roose said.

 

Ninety-six percent of the soybean crop is setting pods, up from the 93 percent a week ago and the five-year average of 94 percent.

 

The USDA reported 7 percent of the crop is dropping leaves, compared to 4 percent last week and the five-year average of 5 percent.

 

Looking at the pod-setting stage of the crop, it's saying that soybeans are still benefiting from the moisture they are receiving, Roose added.