Markets are stronger to start the day on decline in crop conditions last night. Currently corn is up 7 and soybeans are up 30.
USDA crop rating were down 3% in corn at 58% good to excellent. 16% of the crop is in the poor to very poor category. 45% of the corn is in the dough stage, suggesting weekend rains will have less effect to improve yield. National corn yield should be closer to 170 bushels per acre. Kansas corn is rated 26% points lower than the 5 year average at only 30% good to excellent. Texas corn is struggling at only 17% good to excellent compared to 63% last year and a 5 year average of 54%.
Two more grain ships have left the Ukraine now amounting to 12 total ships that have left. There is a 3 mile safety zone set up for ships to leave.
More rain is forecast to fall in the Eastern US in the next 10 days. Parts of Iowa, Missouri and Nebraska will see limited rainfall over the same period. Temps back off a bit and there is another cool front coming. The ridge has moved out West leaving some heat in the Plains, but nothing like it was. The 72 hour rain totals had most crop areas receiving rain. About a third of Iowa was short-changed as was Missouri and Nebraska. The heat out West is going to have an impact on yield.
I don’t think prices are going to move very far in either direction right now. We had rain on the radar and didn’t take the markets that much lower yesterday. Corn priced around 6 dollars is close to insurance prices from the Spring. I don’t think the USDA moves the needle very far on Friday, even though I think the national yield should be lower.
Have a Safe Day!