Source: Rita Jane Gabbett, MEATINGPLACE, 9/2011

USDA reported that 51 percent of the U.S. corn crop was in good or excellent condition in the week ended Sept. 18, down from 53 percent the previous week and 68 percent a year ago at this time.

In its weekly Crop Progress report, USDA rated 21 percent of the corn crop in poor or very poor condition, up from 20 percent the previous week and 11 percent at this time last year.

However, some early harvest reports are showing better than expected results, according to University of Illinois Agricultural Economist Darrel Good.

“Early corn harvest results in some Midwestern locations have uncovered 'better than expected’ yields,” he wrote in a weekly outlook report. “These results suggest that the USDA may not reduce the 2011 yield forecast below the current forecast of 148.1 bushels, or perhaps could even increase the yield forecast in October or November.”

Corn prices have declined sharply so far in September.  After reaching a high of $7.79 on August 29, December 2011 corn futures on the Chicago Board of Trade closed at $6.93 on September 19.
A second factor affecting corn prices is the generally held view that corn demand has weakened, wrote Good.  “Weaker demand implies that prices will not have to be as high as forecast in order to reduce consumption.”

Soybeans
USDA reported 54 percent of the U.S. soybean crop was in good or excellent condition in the week ended Sept. 18, down from 56 percent the previous week and 63 percent a year ago at this time.

USDA rated 18 percent of the soybean crop in poor or very poor condition, up from 17 percent the previous week and 12 percent at this time last year.

Pastures
USDA rated 31 percent of U.S. pastures in good or excellent condition, down from 32 percent a week ago and 46 percent a year ago. The agency rated 44 percent of U.S. pastures in poor or very poor condition, up from 42 percent a week ago and 23 percent a year ago.

To read the entire USDA report, click here. 

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