(AgriMoney) – Dryness – as well as hail and dust storms – has taken a toll on the condition of some US crops, but not corn, for which the proportion of the official rating stayed unchanged, defying market expectations of deterioration.
The proportion of the US corn crop viewed by the US Department of Agriculture as in “good” or “excellent” health was, as of Sunday, 72%, the same as the week before.
“Crop conditions remain favourable,” Luke Mathews at Commonwealth Bank of Australia said, adding that “excellent crop conditions are needed for US corn yields to meet the USDA’s optimistic forecast” of 166 bushels per acre.
At Benson Quinn Commodities, Jon Michalscheck said that the static figure disguised a “slightly negative yield trend bias”, given that it included a decline in crop ratings in major producing, and yielding, states such as Iowa.
There the proportion of the crop rated “good” or “excellent” eased 2% to 75%, despite some rain last week.
“There are areas still in need of moisture. Crop conditions declined slightly for the second straight week although they remained rated mostly good to excellent,” USDA officials said.
‘Evaporation high’
Indeed, many areas of the US remain in need or rain. Official data show 42% of the Midwest suffering abnormally dry or drought conditions, compared with 1.2% a year ago.
“Field conditions continue dry in the US farm belt, despite scattered showers last week, “Gail Martell at Martell Crop Projections said.
“Hot May temperatures were the culprit, keeping evaporation high and reducing the effectiveness of showers”, although cooler weather is expected this week.
“Soil moisture analysis shows a decrease in field moisture across the wide swathe of the US heartland in the recent two weeks.”
Hail damage
Dry conditions did take their toll on some crops, with the USDA pegging its first rating of this year’s soybean crop at 65%, below the 68-69% that investors had expected.
In the key soybean state of Nebraska, “showers brought moisture and improved growing conditions to portions of the east while the dry west saw conditions continue to decline”.
Furthermore, “hail damaged crops and property in areas of the state and producers will have to decide if replanting will take place”.
The proportion of the US rice crop in good or excellent health dropped four points to 65%.
And 52% of US winter wheat was rated in the top two condition bands, down two points on the week, despite a one-point improvement, to 40%, in the figure for Kansas, the top wheat-producing state.
‘High winds and blowing dust’
For cotton, 54% of the US crop was viewed as good or excellent, down three points on the week, reflecting a seven-point decline, to 47%, in the figure for Texas, the top US producing state.
“High winds and blowing dust damaged some recently-emerged cotton,” USDA staff said.
“Overall, corn, cotton, and sorghum progressed well but needed rain in many areas.”
