A dome of heat is pushing its way across farm country as major grains see their worst condition ratings in nearly four years.
The USDA lowered the conditions ratings for both corn and soybeans by one point. Corn is rated at 64 percent good to excellent, seeing its worst mark since 2013 when the national average yield was 158 bushels per acre.
With falling conditions, especially in grain growing states like Iowa, Nebraska and South Dakota, markets are finding fresh reasons to trade modestly higher on Tuesday.
“We generally see our peak in June or early July and then we kind of deteriorate through harvest,” said Joe Vaclavik, president of Standard Grain. “It’s not uncommon to see crop conditions deteriorate, and corn conditions are still above the five-year average.”
Looking closer at the top five corn growing states—Illinois, Indiana, Iowa, Minnesota and Nebraska—all five saw a decline in their condition ratings from last week. Iowa saw the biggest drop with six points, Nebraska is down three points, and the other states are down one point.
As far as progress, those same states are all behind the five-year silking stage. Minnesota is fifteen points behind, Iowa is off by eight, and Illinois is five points behind.