Corn planting has advanced to 97% complete as of June 3. 78% of the crop was in good or excellent condition, compared to 68% last year. With the improvement in weather and success in the fields comes a drop in grain prices. Couple this with the current trade concerns and any possibility of bullish enthusiasm is squashed.
Despite some flooding in Illinois, the Midwest crops have been receiving a good combination of heat and rain. As of June 3, corn planting in the 18 key U.S. states has advanced another 5% to 97% complete.
Of the planted corn, 86% has already emerged, leading last year’s pace by 2 points and the 5-year average by 3 points. Crops in good/excellent condition is down 1 point from last week, but still up from last year. As of June 3, 78% of the crop was in good or excellent condition, compared to 79% last week and 68% last year.
Precipitation across the Corn Belt is expected to trend wetter than normal through the weekend.
To start the weekend, some rain is likely from Illinois to the coast with scattered rains still possible in the northern and central Plains. The Mid-Atlantic is currently expected to see a wet end to the weekend. Showers could also extend from Missouri into the Southeast to bring a wet end to the weekend as well.
Going into next week, we expect to see more wet weather in the east. We could potentially see several inches of rain throughout the week across portions of the Corn Belt and the Southeast.
Futures Under Pressure
The very hot May accelerated the development of the late planted crop and the growing season has advanced rapidly. In addition to favorable weather, markets are also feeling pressure from trade concerns.
Trade disputes with China have left farmers questioning future crop sales. Additionally, stalled NAFTA negotiations also bring doubt about end use markets for crops. Until the trade issues are solved, many things remain uncertain. Trade concerns and favorable weather are not boding well for futures markets. The disappointment over the breakdown in trade talks prompted huge corn/wheat spread unwinding that pushed corn and soybeans into new lows. Successful Farming writes,
Last week’s row-crop prices on corn and soybeans were also significantly lower on good rains over much of the Midwest and the ongoing, and apparently intensifying, trade spats with China, Canada, and Mexico.
Soybeans dropped to a 10 month low. Corn prices are lower as well, hit by follow-through selling after Wednesday’s bearish reversal lower.
As trade disputes fall and planting catches up, futures markets look bleaker and bleaker. Favorable weather has caused a big push at the end of May. Corn planting is about 97% complete and of that, 86% has emerged. Crops are receiving a good mix of heat and rain, leading to ideal growing conditions throughout the 18 key U.S. states. Furthermore, NAFTA is not coming together and trade disputes are driving prices down. Favorable weather and trade concerns are wearing heavy on corn and soybean futures markets.
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