| After yesterdays move higher, markets have taken a bit of a breather today. Yesterday we saw the release of the weekly US crop progress report, US corn is now 95% harvested, virtually complete and 3 percentage points ahead of the previous 4-year average. The US soybean harvest is also 95% complete, 1 percentage point behind the previous 4-year average and about wrapped up for the year. South Dakota, North Dakota, Iowa, Kentucky, and Louisiana are all complete. As for winter wheat planted in the US, at 96% complete this is also wrapping up. Looking at winter wheat condition, a score of 44 for wheat rated good and excellent represents a decline of 2 points in quality from the week prior. Compared to the previous year, the condition is 1 point higher, not an overly positive crop condition heading into winter. With the US harvest, and winter wheat planting now virtually complete, from a weather market and production viewpoint, the focus is on the Southern Hemisphere from here on in. In Brazil, soybean planting is reportedly 86% complete, well ahead of both last year’s pace and the long-term average. Although some areas of Brazil are dry and causing concern, there is welcome rainfall on the forecast. With La Nina in action, rainfall over the coming months in Brazil will be key for soybeans and also during corn pollination. |
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