The U.S. Department of Agriculture (USDA) has reported that the percentage of corn and soybean crops in good-to-excellent condition has increased, topping analyst expectations despite heavy storms and flooding in the western Midwest.
According to the USDA, 68% of both the corn and soybean crops are currently in good-to-excellent condition, the highest for this time of year since 2020. The previous week, the ratings were 67% for both crops.
The strong crop ratings come despite large swathes of the U.S. Midwest being buffeted by flooding, which has forced some farmers to replant their corn and soybean crops and disrupted supply chains in some areas.
The U.S. is the world’s top exporter of corn, used primarily for animal feed and ethanol fuel, and the second-largest global soybean exporter after Brazil. The strong crop ratings this spring, despite the weather issues, have helped push future prices of corn and soybeans to four-year lows, as supplies are thought to be ample.
Additionally, the USDA reported that the U.S. winter wheat harvest is quickly advancing, with 63% of the crop already harvested, in line with analyst estimates and up from 54% the previous week.
For spring wheat, grown in the northern Plains, the USDA rated 75% of the crop in good to excellent condition, above the previous week’s 72% and above the analyst estimates ranging from 70% to 74% good to excellent.
The resilience of the U.S. corn, soybean, and wheat crops in the face of adverse weather conditions has been a positive surprise for the market, contributing to the lower commodity prices.