Row crop and skies

Weekly Commentary: Strong weekend storms move prices down slightly to start the week


Quick glance:

  • Eastern Corn Belt saw the most decline in corn conditions, while soybeans remain unchanged
  • Grain markets dipped after strong storms leave milder temperatures behind
  • Some Chinese companies are looking to buy U.S. agricultural products

Crop Ratings

  • Corn conditions this week fell one percent, down to 57% good to excellent, far behind last year at 72%. The Eastern Corn Belt saw the most decline whereas the central and western parts of the states saw minor improvements. Soybeans were unchanged at 54 percent good to excellent, also significantly behind last year at 70 percent. If conditions don’t break 60% in the next two weeks, concerns about crop development are likely to increase.


U.S.- China Trade Updates

  • Reuters reports some Chinese companies are seeking new purchases of U.S. agricultural products, as Beijing and Washington look for ways to end the prolonged trade war. Rumored talks such as this leave the market place questioning whether an agreement will ever be reached. Most likely any sales to China would be for new crop. If this is the case, old crop sales will likely not reduce the massive U.S. stockpiles.
  • China, the world’s top soybean importer, canceled purchases of over nine thousand metric tons of U.S. soy this month, according to last Thursday’s USDA data. It was China’s first weekly net cancellation of soybeans since April.