According to the latest U.S. Department of Agriculture (USDA) weekly crop progress report, soybean condition ratings have improved, while corn ratings have declined. As of the latest report, 68% of the soybean crop is rated in good to excellent condition, a slight increase from 67% the previous week. This improvement comes despite analysts’ expectations for a 1 percentage point drop.
August is a crucial month for the soybean crop as most of it sets pods during this period, significantly impacting yield predictions. In contrast, the corn crop’s good to excellent rating fell to 67%, down from 68% the prior week, aligning with analyst estimates.
Despite these changes, both crops are rated at their highest levels for this time of year since 2020, indicating expectations for large U.S. harvests. This outlook has contributed to pushing Chicago Board of Trade corn and soybean futures to their lowest levels in nearly four years.
Additionally, the percentage of U.S. corn production located in drought areas increased to 5% as of July 30, up from 4% the previous week. This is a significant improvement compared to last year when 57% of the corn crop was affected by drought.
The USDA also reported that condition ratings for U.S. spring wheat remained steady, with 74% rated in good to excellent condition, contrary to analysts’ expectations for a decline. The spring wheat harvest is currently 6% complete, trailing behind the average analyst estimate of 8% and the five-year average of 10%. Meanwhile, the winter wheat harvest is 88% complete, slightly lagging behind the average analyst estimate of 89% but ahead of the five-year average of 86%.