Crop Conditions

Heat and extended dryness has continued to push crops ahead. The past 20 days (prior to Sunday) were the driest or nearly the driest in 131 years of records across much of the upper Midwest and into southern Kansas. This will no doubt have negative impact on final grain fill for both corn and soybeans. USDA’s monthly WASDE report tomorrow (Tuesday) may or may not begin to show yield adjustments. They may very well wait until October when combines are rolling and early yield reports are in. We see great variability across the region and across most fields. Diving into a field for one or two yield checks will not provide enough samples to account for the variability. It is safe to say that many cornfields will collect on crop revenue insurance in this area.

Crop prices tread lower as September tends to be a poor month for grain pricing. Price direction will react to actual supply news as yields start coming in. The export market may spark up quickly if yields appear to be coming in short, as buyers begin acquiring inventory before prices rise.