Corn and soybean futures in the USA closed higher on fund speculation that the weather will turn hot and dry from the end of this week (do they even need a reason anymore). Farmer selling increased during the day which saw futures retreat from the daily high in the afternoon but still maintain a healthy gain on Friday’s session.
While on healthy, the USDA crop condition report was out last night. USA corn is pegged at 98% sown and is rated at 75% good to excellent, up 3% week on week. Soybeans were at 83% sown and rated 72% G/E. Winter wheat in the states is mostly in head now with harvest underway in the south. Texas has 30% of the crop off already while Kansas is yet to start. Crop condition ratings for the winter wheat crop were back 1% to 62% G/E. Spring wheat was rated 79% G/E. So generally things are looking pretty good in the USA right now.
Over in France however we are starting to see a few reports where things are not looking so good. The wet weather is expected to reduce winter rapeseed yields by around 4.9%, the lower yields are expected to result in a crop 3.7% smaller than last year at 5.1mt.
With French soft wheat area up 1.4% on last year and at the highest level in 80 years, we may well need some weather damage to help balance the ledger a little more favourably.