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Aug 24, 2021

Corn and Beans Firmer After Ratings Slip More Than Expected

Crop Conditions Lower

  • Corn crop conditions were a little lower than expected; dropping to 60% good to excellent from 62% last week.

  • The biggest changes occurred in Illinois which dropped 7 points and Wisconsin which fell 5 points.

  • 85% of the corn is doughing and 41% is denting, both slightly ahead of average.

  • Soybean ratings decreased 1% to 56% good to excellent as increases in South Dakota and Iowa were offset by declines in Illinois and Indiana.

  • 88% of the bean crop is setting pods while 3% is dropping leaves.

  • US wheat harvest is winding down with spring wheat harvest now 77% complete versus 55% on average.

  • Cotton conditions continued to rise to 71% good to excellent from 67% last week, thanks to increases in Texas, Oklahoma and the Carolinas.

FBN’s Take On What It Means For The Farmer: The weather forecast projects good rainfall across the western Corn Belt which should help yields, but temperatures are expected to remain above normal. The warmer than normal temps have proven difficult for crops, and considering the forecast, conditions could stagnant or slip further in the weeks ahead. There is still quite a bit of uncertainty about yields which we would expect to support prices, especially after the recent fall to near the lows of the range.

FBN
FBN

EU Crop Monitor Production Update for 2021

  • The agency marginally trimmed soft wheat yields to 5.98 tonnes per hectare.

  • That slightly lower yield would be 5% above the average and about 5% above last year’s yield.

  • The cut primarily was due to Germany and less then appealing conditions during the last states of growth.

  • Rapeseed yields are seen at 3.21 tonnes per hectare, up marginally from the previous forecast and up 5% from the average.

  • Corn yields are seen at 7.9 tonnes per hectare, which would be up 2% versus the average.

  • Barley yields are seen at 4.99 tonnes per hectare, up marginally from the previous forecast and up 4.5% versus the average.

FBN’s Take On What It Means For The Farmer: The yield updates overall are a plus for grain supplies. The yield changes are not viewed as necessarily bullish or bearish but underscore that the weather there was not significantly adverse overall the past month. The cut to the wheat yield highlights that global supply concerns are present for wheat. The situation is not dire but certainly is different from the views several months ago.


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Kevin McNew

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Magazine

Marketwatch: Dec, 04

cmdty National Corn Price Idx: ZCPAUS.CM

open: 5.6684
high: 5.7321
low: 5.6559
close: 5.7046

cmdty National Soybean Price Idx: ZSPAUS.CM

open: 12.266
high: 12.366
low: 12.2585
close: 12.34

cmdty National Hard Red Winter Wheat Price Idx: KEPAUS.CM

open: 8.1277
high: 8.243
low: 7.9921
close: 8.0144

cmdty National Soft Red Winter Wheat Price Idx: ZWPAUS.CM

open: 7.6225
high: 7.7249
low: 7.4749
close: 7.5391