Chicago Close: Crop Ratings Support Corn, Soybeans

Corn and soybean futures closed higher on Tuesday, supported by drier-biased forecasts and lower-than-expected US crop condition ratings.

Monday’s USDA crop progress report pegged the nationwide corn crop at 72% good to excellent as of Sunday, down 4 points from last week and below the average pre-report trade guess of 74%. Corn was further supported by continued forecasts for increasing warm, dry conditions in the northern Corn Belt over the next couple of weeks or so. Topsoil moisture was rated at least one-half very short to short in North Dakota (84%), South Dakota (78%), Michigan (64%), and Minnesota (51%) as of Sunday. July corn gained ¾ of a cent to $6.80 and December was up 6 ¾ cents at $6.09 ½.

In its first condition rating for the 2021 soybean crop, the USDA put it at 67% good to excellent as of Sunday, 5 points below the previous year and 3 points beneath the average pre-report trade guess. Dry forecasts also supported. July beans climbed 19 ¾ cents to $15.80 and November ended 17 cents higher at $14.57.

Winter wheat markets got some support from a slow start to the US harvest. Just 2% of this year’s national winter wheat crop was in the bin as of Sunday, versus expectations of 5%. Spring wheat was lower with forecasts for rain in parts of Western Canada and the US northern Plains later this week. July Chicago wheat was up a nickel at $6.85, July Kansas City added 2 ½ cents to $6.32 ½ and July Minneapolis was down 13 ¾ cents at $7.71 ¼.

Live cattle closed higher and lean hogs were mostly lower.

Source: DePutter Publishing Ltd.

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