Crop Conditions Reported Steady to Better
- Corn crop conditions were steady at 72% good to excellent as expected.
- Silking progress was 92% compared to 82% last week and 87% average.
- Harvest is beginning in the South with Louisiana (12%) and Georgia (6%) reporting progress and corn reaching maturity in several others.
- The soybean crop was rated 73% good to excellent, up slightly from 72% last week (see Chart of the Day below).
- Spring wheat conditions improved to 73% good to excellent from 70% last week.
- Spring wheat harvest was seen at 5% complete, falling behind the 10% average for this time.
- Upland cotton crop conditions fell to 45% good to excellent from 49% last week, reversing gains from the previous week.
FBN’s Take On What It Means: Crop ratings were steady to better as several increases in the east and north offset the declines seen mostly in Iowa. Scattered showers and normal to below normal temperatures are forecast across the Corn Belt, which will make for near ideal conditions during the grain fill and pod setting stages. Overall conditions can be expected to weigh on prices as crops progress toward harvest which appears to be getting started on schedule.
Soy Oil Usage in Biodiesel Increased
- Total biodiesel production in May of 147 million gallons was up marginally from 143 million in April.
- Soybean oil used for biodiesel production in the month rose sharply to 778 million pounds from 672 million in April.
- The amount of soy oil used for biodiesel in May was significantly above last year’s 659 million pounds, and was an all-time record.
- Soy oil accounted for 70% of all feedstocks used in the month compared with 63% in April and the previous 6-month average of 54%.
- June-Sept soy oil usage would need to be unchanged (2.574 billion pounds) to meet USDA’s marketing year forecast of 7.400 billion pounds.
FBN’s Take On What It Means: Increased bean oil usage for biodiesel production has helped offset other coronavirus decreases in demand. After the last 4 months of increases, USDA may need to increase its forecast in the months ahead. Along with firming world veg oil prices, it’s expected this will provide some support to help offset the potentially large US soybean crop.
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