Baird Equity Research reports that corn and soybean crop conditions continue to hold up better than expected despite recent hot and dry weather. Corn crop conditions are rated 67% G/E, down 1% from the prior week but above consensus expectations. 66% of soybeans are rated G/E, improving 1% compared to last week.
Mircea Dobre, Senior Research Analyst for Baird Equity Research notes that forecasts call for modest precipitation across most top-producing states over the next 5 days. Key Plains States, most notably Nebraska and South Dakota, will receive near-normal precipitation following drier conditions, while Iowa and Illinois also are expected to receive rainfall.
The report notes that corn and soybean prices have rebounded over the past two weeks due to hotter, drier weather but remain below estimated breakeven levels. US crop remains in good condition despite weather concerns, however there are raised concerns over deteriorating crop conditions in Europe, most notably France. In the US, corn silking is reported to be 5% ahead of the five-year average and soybeans setting pods 8% ahead of the five-year average. Baird suspects that the spike in prices could be short-lived due to crop conditions holding up despite weather, along with expected precipitation across key corn and soy states.
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