The condition of soybean crops in the U.S. is deteriorating amid ongoing drought in several key oilseed growing areas.
So, according to the latest USDA Crop Analysts Crop Tour, only 54% of all soybean fields were reported in “good” or “excellent” condition by June 18, down 5% from the previous reporting week. By the same date last year, this figure was at 68%, and the average for the past 5 years is 65%.
At the same time, experts note the deterioration of “good” and “excellent” spring wheat crops – from 60% a week earlier to 51% (59% – a year earlier; 63% – over the past 5 years), as well as corn – from 61% to 55% (70% – last year; 69% – over the past 5 years).
Winter wheat development during the week was stable. By June 18, “good” and “excellent” condition of crops under grain is at the level of 38% (last year – 30%; in the last 5 years – 46%).
Recall that commodity market analysts expect a sharp decline in production potential for both corn and soybeans in the U.S. if drought persists in the Upper Midwest, the eastern corn belt, and the southern plains.
Dmitry Rylko, director general of the Institute for Agricultural Market Conditions (ICAR), noted earlier that the global market has become influenced by growing concerns about drought in the corn and soybean belt in America.
“Prices of soybeans and soybean products went up, and along with them the prices of other oils went up. The situation in the coming weeks and months will continue to be heavily influenced by the weather,” said the expert.