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Despite a 4% drop in weekly corn condition ratings in yesterday’s Crop Progress report from USDA, markets continued their selloff overnight.
monetary policy helps to support the economic recovery from the pandemic, and outside money becomes increasingly interested in grain commodities as a means of hedging against inflation.
Old crop futures moved $0.05-$0.12/bushel higher on a rally in the vegetable oil complex, supported by bargain buying in the palm and soy oil sectors.
The average estimate is identical to the May 2019/20 crush rate calculated by NOPA, which aggregates data from processor members accounting for 95% of total U.S.
Soybean planting is largely complete across the U.S., with only a handful of acres left to be planted as winter wheat harvest picks up.
However, crop condition ratings took a steep hit on a week of hot weather, especially in areas already experiencing drought stress.
USDA’s rating of 62% was not only slightly unexpected, but it raised concerns about how quickly the crop deteriorated over the past week.
Wheat prices tumbled lower this morning as growing expectations for plentiful harvests across the Northern Hemisphere weighed Chicago and Kansas City futures $0.15-$0.16/bushel lower.
With most of the country’s winter wheat headed, market focus will likely increasingly turn to harvest paces.
Showers in the Southern Plains over the past week added further delays to harvesting progress in the region, placing the national rate well below the five-year average of 15% for the same reporting period.
Top hard red winter wheat producing regions Texas and Oklahoma only had 30% and 10%, respectively, of their winter wheat crops harvested.
Hotter temperatures last week coaxed maturation paces along, also dropping condition ratings for the nation’s winter wheat crop by 2% from the previous week to 48% good to excellent, about 2% lower than markets were expecting.
Spring wheat maturation rates are showing more signs of drought stress at this point in the crop’s development than previous condition ratings suggest.
Another week of hot and dry weather in the Northern Plains and Pacific Northwest continued to take a toll on overall spring wheat growing conditions, though USDA’s revisions came in slightly higher than analyst expectations.
Clear skies and hot temperatures are expected across the Midwest and Plains today, according to NOAA’s short-range forecasts.
Both metrics have slowed considerably as vaccination rates rise and life begins to return to more normal patterns, though it’s likely the U.S.
Row crop farming is becoming an increasingly competitive endeavor, with more farmers considering new options for growth over the coming years.
Investor confidence in the Federal Reserve decision to leave interest rates unchanged in this era of high inflation continues to remain high.