June 20, 2024

US corn and soybean condition ratings decline but remain strong

Weekly condition ratings for the US corn and soybean crops deteriorated more than analysts expected last week but remained the highest for this time of the season in several years, according to US government data, Reuters reported.

The US Department of Agriculture (USDA) rated 72% of the corn crop as good to excellent in its weekly crop progress report, down 2 percentage points from the previous week. This was more than the 1-point decline expected by 12 analysts surveyed by Reuters. Despite the drop, the rating was still the best for the 24th week of the calendar year since 2018.

A healthy corn crop from the US, the world's largest exporter of the grain used primarily in animal feed and ethanol fuel, would add to the burgeoning supplies already anticipated to reach a six-year high in the US by September 2025.

For soybeans, the USDA rated 70% of the crop as good to excellent, down from 72% last week but still the highest for this calendar week since 2020. Analysts had expected a 1-point decline. The US is the second-largest global exporter of soybeans, after Brazil.

Market players are monitoring a heat wave gripping much of the United States over the next week, which could potentially stress crops in the eastern Midwest where forecasts also predict dry conditions.

Condition ratings improved for spring wheat, grown in the northern US Plains, where most analysts had expected a decline. The USDA rated 76% of the spring wheat crop as good to excellent, up from 72% last week, surpassing analysts' estimates.

Meanwhile, the harvest of the US winter wheat crop is progressing rapidly. The USDA reported that the winter wheat harvest was 27% complete, up from 12% a week ago and ahead of the five-year average of 14%.

-      Reuters