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Crop Conditions Improve

Published on: 08:00AM Sep 03, 2014

 U.S. grain futures are trading lower in the overnight session follow positive condition ratings released yesterday’s after the market close. At the moment corn is down 4 cents, soybeans if off 6 cents, and wheat continues to March lower – down 7 cents. The dollar index gave back some of yesterday’s strength in the overnight session but remains very strong and an overall negative influence on grain prices.

Crop conditions were up for corn and soybeans, with soybean showing the largest week over week improvement. 72% of soybeans are now rated good-excellent, surpassing the record of 71% for the last week in August set in 1992. Corn improved 1%, with 74% of the crop now rated good to excellent. Lagging maturity remains a concern for some corn traders as just 8% of the crop is mature compared to a 5 year average of 16%. In the key growing states of Iowa and Illinois corn maturity is 12% and 19% behind the 5 year average pace, respectively. 

A ceasefire was announced by the Ukrainian President Petro Poroshenko this morning for the eastern parts of Ukraine. The decision came after a meeting with Vladimir Putin who stated later that his views were very close to that of the Ukrainian President on the way to resolve the conflict in eastern Ukraine and that an agreement could be reached by Sept. 5th. The resolution to the Ukrainian conflict would continue to pressure corn and wheat which are now trading on the low side of their range.