USDA: Crop ratings decline
DES MOINES, Iowa (Agriculture.com)--The U.S. corn and soybean crops continue to degrade, according to the USDA.
In its weekly Crop Progress Report, the government Tuesday downgraded the corn by 2% and soybeans by 1%, the fifth drop in ratings in as many weeks.
Numerous states received lower soybean ratings including: Iowa, Illinois, Indiana, Nebraska, Missouri, and others.
In its report, the USDA rated the U.S. corn crop as 52% good/excellent, 27% fair, and 21% very poor-poor. The crop is 71% dented vs. an 84% year ago average and a five-year average of 70%. USDA says 94% of the corn is in the 'dough' stage vs. 97% a year ago and a 92% five-year average.
For soybeans, 97% of the U.S. crop is setting pods vs. 99% a year ago and a 98% five-year average. USDA rated the crop as 16% very poor-poor, 28% fair and and 56% good/excellent. Only 6% of the soybean leaves have dropped vs. a 13% five-year average.
This low leaf drop rate could signal a late harvest, Rich Feltes, RJ O'Brien vice-president stated in a newsletter to cutovers.
Overall, the crop ratings are slightly supportive for the grain and soybean markets, Feltes says.
A firm overnight market is seen, especially with the late rally in farm markets Tuesday.
"Look for choppy to lower price action into next Monday’s crop report. At some point, persistent US HRW dryness will resonate with wheat market but not until outside markets stabilize which is unlikely until after President’s address to joint session of Congress on Thursday," Feltes wrote in a daily note to customers.
Spring wheat is 68% harvested vs. a 74% year ago average and an 81% five-year average.