The market continued higher in the overnight session with December corn up ¾ cent, November soybeans up 8 cents and wheat up 2 cents. The market will digest the latest updates in the crop conditions report, but most attention will be directed toward the August USDA WASDE report scheduled for release on Thursday.
The weekly crop progress report showed a continued deterioration in the national corn crop. In the 18 states that make up over 90 percent of our acres, corn rated good-to-excellent slid to 60 percent from 61 percent the previous week. Good-to-excellent ratings declined by 5 percent in Illinois to 58, down 1 percent in Iowa to 64, down 1 percent in Minnesota to 80 and down 1 percent in Nebraska to 59. The decline in good-to-excellent ratings was partially offset by a 3 percent increase in Indiana to 52, a 2 percent increase in Missouri to 63 and a 1 percent increase in North Dakota to 40.
The national soybean crop condition was revised higher this week to 60 from 59 percent last week with some of the largest increases coming from North Carolina, Ohio, North Dakota, South Dakota and Indiana this week. Spring wheat conditions improved by 1 percent this week to 32.
Precipitation is expected in the Southern Plains and Lower Mississippi Valley in both the 1-5 and 6-10 day weather forecast. The Midwest is expected to stay cool, but the mild and dry pattern is expected to cause some moisture stress to the corn and soybean crop.
Figures from from the General Administration of Customs of China showed that soybean volumes imported during July increased by 31.1 percent to 10.08 million metric tons. According to one analyst, the strong increase can be explained by delayed arrivals from the previous month coupled with a change in taxes. Either way, the large supply in the cash market is likely to continue putting pressure on Chinese crush margins which have been in the red since February. Just yesterday it was reported that a Chinese soybean buyer resold more than 500,000 metric tons of soybeans.
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