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.
Weather
- This weekend brought high heat to major crop areas but ended it with strong storms that left behind milder temperatures, which markets reacted with prices dipping at the beginning of the week. While the rain and mild temperatures are positive for short-term outlook, there is still significant delayed crop development which is bringing fall weather risks into play on harvested acres and yield.
- Cooler weather should help improve crop conditions in most areas from recent heat. However, moderate heat is expected to return during the last few days of July.
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.
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