USDA Crop Progress Report

USDA Crop Progress Reports:

The USDA’s latest crop progress report from Monday shows a U.S. corn crop that continues to lag behind the 5-year averages.

Headline condition scores saw a 1% increase of the crop rated “Good/Excellent” to 57%. Illinois saw the largest crop improvements.

Reported corn doughing and denting at 71% and 21% remain will behind the 5 year averages.

Soybean condition scores show a 2% increase of the crop rated “Good/Excellent”. Illinois had the biggest improvement with the “Good/Excellent” increasing by 10% WoW.

79% of the crop is reported as setting pods compared with the 5 year average of 91%.

Spring wheat harvest continues with 38% complete which is behind the 5 year average of 65%.

What It Means for the U.S. Farmer: We believe the financial markets will trade the headline condition scores but at FBN we look at the corn and soybean crop development numbers to help tell the long term story. We also believe the continued impacts of delayed corn and soybean planting combined with the lack of growing degree days (GDD) continue to offer concerns about the ability of the crop to mature properly.

President Trump Says Chinese Trade Deal Coming

On Monday, President Trump, who has been attending a G7 summit in France, predicted a trade deal with China would be forthcoming after positive gestures by Beijing.

The announcement by Trump comes after the tit-for-tat tariff increases last Friday. The U.S. levied an additional duty on some $550 billion of targeted Chinese goods and after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods.

Trump said after that he believed China is “sincere” about wanting to reach a deal. The president cited increasing Chinese economic pressures as well as an increasing unemployment numbers as catalysts for Beijing returning to the negotiating table.

What It Means for the U.S. Farmer:At FBN, we have always taken a “wait and see” approach with regards to the U.S/Chinese trade talks. The latest comments made by President Trump at the G7 summit are no different. At FBN we want to see specifics as it pertains to agricultural items.

The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)

—Kevin McNew