Markets Slow to Respond to Crop Progress Numbers

FROM R-F-D RADIO NETWORK

Crop condition ratings remained relatively poor in the weekly crop progress ratings released by USDA on Monday afternoon, but they've yet to spark a market response.

“A large amount of uncertainty surrounds speculation about the size of the 2017 corn crop,” said Todd Hubbs, University of Illinois ag economist.

“Corn prices will continue to trade in a wide range as we move through the crucial periods of the corn growing season in the United States,” he noted. “The high level of uncertainty makes anticipating the price direction difficult, but it seems there is more production risk than currently reflected by the corn market.”

According to this week’s report, 63 percent of Illinois corn is rated good to excellent, up 1 point from last week. Meanwhile, 11 percent of the crop is rated poor or very poor, up 2 percent.

The soybean crop deteriorated more sharply. This week’s ratings show 73 percent of beans rated good to excellent, compared with 79 percent last week. And 14 percent of the crop is considered poor or very poor, compared with 10 percent last week.