July 1, 2008

 

US crop report indicates corn in good condition rises

  
  

The good-to-excellent condition rating for the US corn crop rose in the week ended Sunday (June 29, 2008) with a corresponding gain also made in the good-to-excellent condition of the US soy crop, according to the weekly progress report issued Monday (June 30, 2008) by the USDA.

 

The good-to-excellent condition rating of the US spring wheat crop also rose, but the heading pace of the crop fell well below the five-year average. The US winter wheat crop harvest rose well above last week but remains below the five-year average.

 

Some improvements were noted in the core Midwest areas, said Joel Karlin, sales manager and commodity sales coordinator for Western Milling. "In the areas where it stopped raining, the plants were able to tap into the moisture and respond to the warmer weather."

 

Favorable growing conditions will likely extend into the beginning of the week in the US corn belt.

 

Significant rainfall is unlikely for the northern third of the US corn belt this week, although the lower two-thirds could see thunderstorms late Wednesday and Thursday, according to private weather forecaster T-storm Weather.

 

Temperatures will remain cooler than usual for the northern third of the region while a slight warming trend is set to occur farther south.

 

 

Corn 
    

The good-to-excellent condition rating for the US corn crop was 61 percent, two percentage points above the preceding week.

 

Rains benefited the crops, even in Iowa, Karlin said.

 

Since traders had expected a one-to-three percentage point rise in the good-to-excellent condition rating from the previous week, Karlin said the market response to the good-to-excellent condition rise will be "neutral."

 

Some, however, see the US corn rated in very-poor-to-poor condition as an indication of lingering troubles.

 

Since the poor-to-very-poor rating total was unchanged at 11 percent, it could mean there is not much improvement in acres that were hurt by the flooding, said Bill Nelson, grains analyst at Wachovia.

 

Severe flooding in parts of the Midwest caused significant delays to planting and problems to already-planted corn earlier this month.

 

In Iowa, the good-to-excellent condition rating for the corn crop was 53 percent, three percentage points above the preceding week.

 

In Illinois, the good-to-excellent condition rating for the corn crop was 60 percent, four percentage points above the preceding week.

 

Karlin said emerging dryness from the southern states could pose a problem to the Midwest corn crop in the near future as they could spread north to states like Tennessee and Kentucky.

   

  

Soy

  

Soy rated good-to-excellent was 58 percent, one percentage point above the previous week.

 

"(Soy) crops started responding to the abundant moisture in the ground and the warmer temperatures," said Karlin.

 

Since traders had expected a one-to-three percentage point rise in the good-to-excellent condition rating from the previous week, Karlin expects market reaction to be neutral.

 

In Iowa, the good-to-excellent condition rating for the soy crop was 56 percent, six percentage points above the preceding week.

 

In Illinois, the good-to-excellent condition rating for the soy crop was 52 percent, one percentage point above the preceding week.

 

The USDA said 95 percent of the US soy crop was planted, up from 91 percent last week but below the five-year average of 98 percent.

 

"There are probably some bean acres that are just not going to get planted," said Karlin. "You might say that today's planting report is too high."

 

Traders had expected 95 percent to 97 percent of the soy crop to be planted.

 

The USDA said 90 percent of the soy crop has emerged, up from 82 percent last week but below the five-year average of 96 percent.

 

"Almost all the soys should be emerged at this point," said Karlin. "Ten percent of the crop still not emerged is not a favourable development."
   

Video >

Follow Us

FacebookTwitterLinkedIn