USDA Increases Its Corn Crop Condition Ratings08/24/2016
On Monday, the USDA upped its good/excellent rating for the U.S. corn crop, while the same condition status for soybeans remain unchanged from a week ago.
In its weekly Crop Progress Report, the USDA pegged the corn crop at 75% good/excellent, up from 74% a week ago. Also, 40% of the nation’s corn has reached the dented stage vs. a 35% five-year average; 85% of the corn is in the dough growth stage, compared with a 75% five-year average.
For soybeans, 72% of the crop is rated good/excellent, equal to a week ago. USDA pegged the nation’s soybean crop as 89% pod-setting vs. the 85% five-year average.
Al Kluis, Kluis Commodities, says the USDA crop ratings will pressure Monday night markets.
“These reports are about what was expected and are very high for this time of year. The crops are in good condition and ahead of normal maturity,” Kluis says.
When the markets start trading again tonight, corn is seen lower.
“Today’s report is slightly negative for prices tonight. I expect corn to start out unchanged to slightly lower based on this news,” Kluis says.
Kluis adds, “For soybean prices, the report is slightly negative. I look for soybeans to be steady to lower tonight based on this news,” Kluis stated in a note to customers.