Tags: Dry | Weather | Corn | Soybean

Dry Weather Keeps Stress on Corn and Soybean Crops

Tuesday, 19 Jun 2012 11:05 AM

Hot and dry weather has hurt U.S. corn and soybean crops more than analysts expected, the U.S. Department of Agriculture (USDA) said in its latest weekly report.

The USDA crop progress report said 63 percent of the U.S. corn crop last week was in good-to-excellent condition — below last week's USDA rating of 66 percent and also below an average of analysts' estimates for 64 percent.

Additionally the soybean crop was deteriorating, according to the USDA.

Government data showed 56 percent of the soy crop was in good-to-excellent shape as of Sunday, down 4 percentage points from last week and 2 percentage points worse than the average of analysts' estimates.

Hot and dry weather in the U.S. southeast and Delta crop growing regions led to the decline in crop ratings and more declines are likely this week as dryness continues in such states as Indiana, Ohio and Michigan, the analysts said.

"A lot of the southern areas missed the rains over the weekend and there will be more stress on crops this week," said Shawn McCambridge, analyst for Jefferies Bache.

The slide of crop conditions were slowed only by rainfall in northern and northwest crop states including much of Illinois, Iowa, Minnesota, the Dakotas and Nebraska.

"Obviously the eastern states is where they will suffer the most and probably a little uptick in the west," a trader said.

Dry weather in the southeast Midwest is expected to continue stressing corn and soybean crops for the next week to 10-days while beneficial rainfall late last week and more this week will buoy crops elsewhere, an agricultural meteorologist said on Monday.

"There's still a situation in the southeast with a lack of rain. This includes Indiana, Ohio, Michigan and much of the Delta," said John Dee, meteorologist for Global Weather Monitoring.

Crop-friendly rainfall was received late last week and over the weekend in several important growing areas of the Midwest including dry areas of Illinois.

"Although we certainly saw some improvement over the weekend in southern and western Iowa, eastern Missouri, and north-central Illinois, dryness is still a significant concern across western Nebraska, northeastern Iowa, Missouri, southwestern Wisconsin, southern and eastern Illinois, Indiana, and southern Michigan" said Kyle Tapley, agricultural meteorologist with MDA EarthSat Weather/CropCAST.

Rains are expected to favor northwestern portions of the Midwest this week, Tapley said, but crops will also have to contend with heat early this week with temperatures reaching the mid- to upper 90s Fahrenheit (37 degrees Celsius)

"Leaving 30 percent of the Corn Belt dry is getting some attention," said Newedge USA analyst Dan Cekander. "And the forecast for those areas is still pretty dry."

© 2017 Thomson/Reuters. All rights reserved.

 
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2012-05-19
Tuesday, 19 Jun 2012 11:05 AM
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