Corn, Soybean Conditions Stabilize on Good Crop Weather -- USDA
Corn conditions were mostly unchanged -- with a slight improvement in one category -- while soybeans were identical in their ratings from a week ago in Monday's USDA-NASS Crop Progress report. With those numbers already at fairly high levels, the data likely won't mean much good news for the corn and soybean markets moving through the overnight trade and into Tuesday, analysts say.
Now, 75% of the nation's corn crop is in good or excellent condition, identical to a week ago with one slight change: Corn rated in the top "excellent" category rose to 21%, while the lower "good" category fell by 1 percentage point to 54%. Soybeans, on the other hand, were identical in their rating from one week ago, with 72% in good or excellent shape, according to Monday's report.
Those condition ratings are indicative of stable, positive crop weather for both corn and soybeans, and that's exactly what analysts say kept a lid on those grains in Monday's trade. And, with Monday's assurance from USDA that those crops continue to fare well, the trade response is likely to be bearish between now and Tuesday morning, says Kluis Commodities LLC broker and analyst Al Kluis.
"The grain markets were hit hard today because of ideal weather forecasts. The USDA report on conditions showed the nation’s corn crop rated at 75% good to excellent with a few changes from last week and up 7% from last year. The central Corn Belt has a really good crop with Iowa rated 76% good to excellent, Illinois and Wisconsin at 80% good to excellent. The crop in Minnesota continues to drop and is now rated at just 64% good to excellent; I am still trying to find where that is," Kluis says. "The nation’s soybean crop is in good shape with a rating of 72%. Again, the best crops are in the central Corn Belt and the problem areas are up north.
"Today's report is a little negative for corn prices tonight. I expect corn to start out 1 to 2 cents lower tonight. Today's report is likely to take soybean prices a little lower tonight for new-crop prices," he adds.