Published: Sat, August 06, 2016
Economy | By Melissa Porter

Chicago agricultural commodities close lower as big crops loom

Chicago agricultural commodities close lower as big crops loom

Relatively dry conditions throughout the week were ideal for crop development and allowed Iowa farmers 5.4 days suitable for fieldwork for the week ending July 31, according to USDA's National Agricultural Statistics Service, Upper Midwest Regional Field Office, Iowa. Subsoil moisture supply was rated at 1% very short, 6% short, 86% adequate, and 7% surplus.

As for the state's soybean crop, the weekly report shows that 90% of the crop is blooming, which is six days ahead of a year ago. There are some reports of corn starting to dent. Soybean conditions are also faring well with 72% in good or excellent condition - compared to 71% last week and 63% past year.

Keep in mind both IL and Iowa corn condition ratings are some +13 percent higher than their three-year average.

Beans are well along too: 90% are blooming, about six days ahead of last year, and 64% of soybeans were setting pods, about five days ahead of last year. The ten year average at this time of year is 21 percent.

Soybean futures led the declines, weighed down by improving USA crop conditions and speculation that government forecasters in a Key supply-and-demand report next week will boost yield estimates, potentially foreshadowing a massive harvest to come in the Fall. Corn conditions climbed during the grain's critical pollination period, soybean ratings stayed high and the harvest of winter wheat added to a global glut.

Click to enlarge
Click to enlarge

In its weekly crop report, the department said the average temperature statewide was about 80 degrees, which is 3.6 degrees above normal.

Temperatures for the week as a whole averaged 0.6 degrees below normal.

The most active corn futures on the Chicago Board Of Trade was down half a cent at $3.33-3/4 a bushel by 1018 GMT, just off a session low of $3.33 a bushel that was its lowest since October 2014.

The maximum rainfall reported for the week was from Yellow River State Forest in southeast Allamakee County with 2.55 inches.

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