August 12, 2008


US corn, soy development still behind average


Development of the US corn remained behind the five-year average in the week ended Sunday (August 10), while the percentage of corn in good-to-excellent condition climbed by one percent, the USDA said Monday (August 11).


The US soy development also remained behind average, while the good-to-excellent rating held steady.


"If you're looking strictly at crop conditions, it's a neutral report. If you're looking at the further development of this crop, I would tell you it's supportive to bullish for corn and soy," said Joe Victor, vice president for marketing at Allendale in McHenry, Illinois.


The amount of US spring wheat rated in good-to-excellent condition fell in the week ended Sunday, while harvesting of the crop continued to trail the five-year average. The US winter wheat crop harvest completion rate rose from last week but remains below the five-year average.


Weather will be key for corn and soy during the next couple of weeks, Victor said. Although weather has been consistently favorable in recent weeks, analysts have started to voice concern that the crop has not had enough warmth to give it the growth it needs prior to autumn.


The crop conditions will be overshadowed Tuesday (August 12)by the release of the USDA's crop production report at 8:30 a.m. EDT, analysts said.

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