28th Aug 2012, by Agrimoney
The condition of US corn and soybean crops resumed deterioration as the rains which refreshed many drought-hit Midwest areas missed more northerly states, leaving some areas to endure "damaging weather".
The proportion of the moisture-deprived US corn crop rated in "good" or "excellent" condition eased by 1 point to 22% as of Sunday, maintaining its record as the lowest since the drought year for 1988.
Soybeans kept up this record too by also recording a one-point ratings decline, to 30% seen in good or excellent health.
The declines defied some hopes of continued stabilisation or even improvement in the soybean crop after rains reached many producing states last week.
For corn, dryness damage has become irreversible and, indeed, the rains confronted farmers with delays to the early harvest. Growers had 6% of their corn in the barn, a record pace and up four points in the week, but well below the 10% that the market had expected.
North-south divide
In some of Corn Belt states, such as Indiana, worst hit by the summer drought, crop condition indeed improved.
In Iowa, the top corn and soybean producing state, "although soybean conditions lag behind previous years, farmers are hoping plants will produce more pods as a result of recent rains", USDA officials said.
However, states further north, which fared relatively well earlier in the season, played some catch up on crop deterioration, a factor highlighted too in a report from Morgan Stanley.
In Wisconsin, "spotty rains failed to provide much-needed moisture to many areas", while in North Dakota, "precipitation was limited to the central and north eastern parts of the state," leaving some untouched areas with "damaging weather".
Mercury rises
However, the worst ratings declines were seen in South Dakota, where the proportion of corn rated good or excellent sank by 14 points, to 17%, and soybeans making the top grades tumbled by 16 points, to 25%.
"The majority of the crops saw a decline in condition ratings this past week, as temperatures climbed," USDA staff said.
"Warm temperatures returned to the state during the week with temperatures reaching into the 90s and low 100s Fahrenheit in a few places," peaking at 103 Fahrenheit in Winner.
"Little precipitation fell anywhere in the state. The combination of conditions did not improve drought conditions anywhere in the state.
"Soil moisture recovery needed for fall seeding consideration and overall recharge was also obviously limited."
'Crippling drought'
The comments follow the identification last week by the Pro Farmer crop tour of the dismal state of South Dakota crops amid "crippling" drought, with the scouts pegging the average yield at 74.3 bushels per acre.
The USDA has the yield at 98.0 bushels per acre, itself well below the 132.0 bushels per acre last year.
And, indeed, the condition data cast doubt on ideas of recent rains improving crop hopes, with Benson Quinn Commodities estimating the market has been trading a soybean yield of up to 38 bushels per acre, above the 36.1 bushels per acre estimated by the USDA.
At broker RJ O'Brien, Richard Feltes said: "Taken as a whole, the failure of US row crop ratings to advance in the wake of improved August moisture must be viewed as mildly supportive" to prices.
Cotton improves – for now
For cotton, the proportion of the crop seen as good or excellent rose two points to 43%, led by a 12-point jump in the rating for Louisiana, where farm officials said that "rainfall was received throughout the state last week improving dry conditions in the northern areas".
In Texas, the top cotton-producing state, the crop improved 1 point as "in the High Plains, dry land cotton condition was aided by rainfall and cooler temperatures, with setting of bolls nearly complete.
Nonetheless, cotton futures showed only limited losses on Tuesday, as investors prepared for potential crop damage from Tropical Storm Isaac, expected to hit some major cotton-growing areas.
New York's December contract was 0.01 cents lower at 76.13 cents a ound at 05:00 local time (10:00 UK time).
The condition of US corn and soybean crops resumed deterioration as the rains which refreshed many drought-hit Midwest areas missed more northerly states, leaving some areas to endure "damaging weather".
The proportion of the moisture-deprived US corn crop rated in "good" or "excellent" condition eased by 1 point to 22% as of Sunday, maintaining its record as the lowest since the drought year for 1988.
Soybeans kept up this record too by also recording a one-point ratings decline, to 30% seen in good or excellent health.
The declines defied some hopes of continued stabilisation or even improvement in the soybean crop after rains reached many producing states last week.
For corn, dryness damage has become irreversible and, indeed, the rains confronted farmers with delays to the early harvest. Growers had 6% of their corn in the barn, a record pace and up four points in the week, but well below the 10% that the market had expected.
North-south divide
In some of Corn Belt states, such as Indiana, worst hit by the summer drought, crop condition indeed improved.
In Iowa, the top corn and soybean producing state, "although soybean conditions lag behind previous years, farmers are hoping plants will produce more pods as a result of recent rains", USDA officials said.
However, states further north, which fared relatively well earlier in the season, played some catch up on crop deterioration, a factor highlighted too in a report from Morgan Stanley.
In Wisconsin, "spotty rains failed to provide much-needed moisture to many areas", while in North Dakota, "precipitation was limited to the central and north eastern parts of the state," leaving some untouched areas with "damaging weather".
Mercury rises
However, the worst ratings declines were seen in South Dakota, where the proportion of corn rated good or excellent sank by 14 points, to 17%, and soybeans making the top grades tumbled by 16 points, to 25%.
"The majority of the crops saw a decline in condition ratings this past week, as temperatures climbed," USDA staff said.
"Warm temperatures returned to the state during the week with temperatures reaching into the 90s and low 100s Fahrenheit in a few places," peaking at 103 Fahrenheit in Winner.
"Little precipitation fell anywhere in the state. The combination of conditions did not improve drought conditions anywhere in the state.
"Soil moisture recovery needed for fall seeding consideration and overall recharge was also obviously limited."
'Crippling drought'
The comments follow the identification last week by the Pro Farmer crop tour of the dismal state of South Dakota crops amid "crippling" drought, with the scouts pegging the average yield at 74.3 bushels per acre.
The USDA has the yield at 98.0 bushels per acre, itself well below the 132.0 bushels per acre last year.
And, indeed, the condition data cast doubt on ideas of recent rains improving crop hopes, with Benson Quinn Commodities estimating the market has been trading a soybean yield of up to 38 bushels per acre, above the 36.1 bushels per acre estimated by the USDA.
At broker RJ O'Brien, Richard Feltes said: "Taken as a whole, the failure of US row crop ratings to advance in the wake of improved August moisture must be viewed as mildly supportive" to prices.
Cotton improves – for now
For cotton, the proportion of the crop seen as good or excellent rose two points to 43%, led by a 12-point jump in the rating for Louisiana, where farm officials said that "rainfall was received throughout the state last week improving dry conditions in the northern areas".
In Texas, the top cotton-producing state, the crop improved 1 point as "in the High Plains, dry land cotton condition was aided by rainfall and cooler temperatures, with setting of bolls nearly complete.
Nonetheless, cotton futures showed only limited losses on Tuesday, as investors prepared for potential crop damage from Tropical Storm Isaac, expected to hit some major cotton-growing areas.
New York's December contract was 0.01 cents lower at 76.13 cents a ound at 05:00 local time (10:00 UK time).
No comments:
Post a Comment