Baird analyst Mircea (Mig) Dobre provided the following quick take following this week’s USDA Crop Progress report.
The percentage of Corn crop rated good-to-excellent (G/EX) increased 1% week-over-week to 72% (flat year-over-year). Soybeans were down 2% to 66% (-4% year-over-year).
“Heavy rain is in the forecast this week across the corn belt, crop emergence is better than or at average for most commodities,” he says. “Corn (nearing $4.30/bushel) and Soybeans ($10.70/bushel) remain below levels needed for incremental equipment investment.”
Dobre notes that current crop conditions are consistent with strong yield forecasts, for now, and commodity prices are likely to remain pressured.
Source : Farm Equipment