Boost for soybean ratings in US crop progress report
Following the previous week’s improvement in US corn condition scores, markets were left disappointed with the overall proportion of US corn in good and excellent being maintained at 65%, noted CRM Agri.
For soybeans, there was a marginal increase in the proportion of soybeans being rated excellent, up one percentage point from the previous week. Overall, US soybean ratings improved to 61% good and excellent, while progress is still ahead of average, with 63% of US soybeans having reached the blooming phase, well ahead of the 57% long-term average.
US spring wheat conditions continued to decline, falling to just 11% rated good and excellent, down from 16% the previous week.
High temperatures and heat build-up are again a feature of the US this week, said the analysts. “The continual decline in spring wheat prospects, alongside the high temperatures, is continuing to provide support to global grain markets.”
Looking to Europe, CRM Agri in its weekly grains market outlook, published on Monday, said rains in Germany have led markets to price in potential declines in quality, alongside a delay to harvest.
“While there is the potential for increasing bread wheat premiums, we remain cautious for the knock-on increasing volumes of feed grade continental wheat. In the Black Sea, and initial Russian harvest yields drove concerns for the overall size of the Russian crop.”
Those analysts noted that multiple organizations swiftly lowered their forecast for Russian wheat production on the back of poor initial yield reports, and global wheat markets pushed higher. “However, in our opinion it was too early to cut production estimates, and as harvest has continued, average yields have since increased, and by the end of last week were being recorded as higher than in 2020.”
