Midwestern crop conditions continue to deteriorate. The latest crop condition ratings show both corn and soybeans are suffering under the blistering heat and lack of rain. Katy Darr, with Crestview Commodities in Syracuse, IN, says the crop ratings have gotten the attention of futures traders in Chicago, “Especially Illinois with only 39% in good to excellent condition and Indiana at 27% in good to excellent condition, both well below their averages at around 60% good to excellent.” She added that a major technical move occurred in the corn on Tuesday when December futures moved above $6, a major resistance point. While soybean prices moved lower on Tuesday, Darr says the state of the soybean crop is a key factor to watch, “Again Illinois with soybean conditions at 35% at good to excellent and Indiana at only 24% good to excellent condition.”
The weather forecast does not hold out much hope of improvement. HAT meteorologist Rob Wasson says the next few days are going to be brutal, “Extremely dry and hot weather will continue for the rest of the week with very little rainfall. Daytime highs in the 90s to lower 100s will bake soils and push evapotranspiration rates above .40″ each day. Livestock heat stress will push into the danger category on Thursday and through the weekend.” Wasson added that scattered showers and a few thunderstorms will be possible on Friday, Saturday, and Sunday. Most areas, he said, will get only light amounts under .25″ with a few areas of .50″ or more.
The USDA will release its acreage report and yield estimate on Friday, but Jim Riley with Riley Trading says, as it stands now, the weather will trump any influence the crop report will have.
[audio:https://www.hoosieragtoday.com//wp-content/uploads//2012/06/crops.mp3|titles=Indiana and Illinois Crops Wilting Under Blistering Hea]