USDA drops corn, soybean ratings
U.S. corn and soybean crop condition ratings each drop 3% compared to last week, according to the USDA Crop Progress Report.
On Monday, the USDA rated the U.S. corn crop as 63% good/excellent, 11% very poor-to-poor, and 26% fair.
The report shows that 43% of the U.S. corn crop is in the silk stage vs. 84% one year ago and a five-year average of 56%.
For soybeans, the crop is rated as 64% good-to-excellent, 28% fair, and 8% very poor-to-poor. Last week's good/excellent rating came in at 67%.
USDA reported that 8% of the crop is setting pods vs. 33% a year ago and a 19% five-year average.
Also, 46% of the soybean crop is blooming vs. a 78% five-year average.
Al Kluis, Kluis Publishing, says this afternoon's report is price-friendly for the overnight market.
"Today's report is slightly positive for prices. I expect corn to start out 1 to 2 cents higher tonight. The soybean number is viewed as a little negative for prices and will likely take soybeans down by 2 to 3 cents tonight," Kluis says.
Wheat is expected to react slightly positive to the Monday report, he says.
"What does this mean for farmers? "Be patient. If crop ratings are starting to decline, odds are good that new-crop prices will start to rally," Kluis says. In its report, the USDA indicated that 75% of the winter wheat crop is harvested vs. 84% a year ago. For spring wheat, 68% of the crop is rated as good-to-excellent, 27% fair, and 5% very poor-to-poor.