soybean futures in Chicago they rose steadily this wednesday september 6 in Chicagoafter a weekly report from the U.S. government showed that crop conditions deteriorated more than expected during a hot and dry period.
The most active soybean futures rose 0.8% to $499.8 a ton. He corn remained almost unchanged $185.62, and the wheat gained 1.6% to $213.84.
The reduced crop fueled expectations among traders that the US Department of Agriculture could cut its yield forecast, in a monthly report to be released next week.
The USDA already projects ending soybean stocks to fall to their lowest level in eight years. in the 2023/24 commercial campaign, which will leave little room for supply.
After grain markets closed on Tuesday, the government rated 53% of the soybean crop as good to excellent, 5 percentage points less than the previous week and also below the 55% expected by analysts.
The corn crop rating was also below analysts’ expectations.
The good to excellent grades for both crops are the lowest for this time of year since 2012, a record dry year, and deepen concerns about crop stress. “There are key states that now do not look very good”said Ted Seifried, chief market strategist at Zaner Ag Hedge.
In Iowa, the second-largest US soybean-producing state, 49% of the soybean crop is in good to excellent condition, down 17 percentage points from a year ago, according to USDA data.
In Wisconsin, 55% of the crop is in good to excellent condition, down 23 percentage points from last year.
A survey of farmers released Wednesday by the Allendale brokerage forecast a yield of 49.58 bushels.
Source: Ambito
