Key facts
- US corn crop rating is 67% good/excellent.
- US soybean crop rating is 66% good/excellent.
- Corn futures dropped 3.5 cents to $4.40'4.
- Soybean futures slid 15.5 cents to $11.65'2.
- US corn export inspections are projected at 1.90 MMT next week.
- Soybean export inspections could be 600,000 MT.
- Soybean export inspections may decrease by 16% from the prior week.
- US pasture and range land was 30% good-to-excellent as of May 31.
- Romania anticipates strong wheat and barley yields.
- Potential rain and storms may impact Romania's harvest quality.
US corn and soybean crop ratings have fallen short of market expectations, with corn rated at 67% good/excellent and soybeans at 66%. These lower-than-anticipated ratings have contributed to selling pressure on agricultural futures. Corn futures declined by 3.5 cents to settle at $4.40'4, marking a sixth consecutive session of losses. Soybean futures also slid, dropping 15.5 cents to $11.65'2, with some reports indicating a settlement at 1117'4. The market is also contending with potential US tariffs on Brazil and a higher-than-expected jobless report, which have added to general market uncertainty and geopolitical tensions.
Export inspections present a mixed picture for the upcoming week. US corn export inspections are projected at 1.90 million metric tons, representing a 10% increase from the prior week. June Census corn exports are estimated at 8.09 million metric tons. In contrast, soybean export inspections are expected to decrease by 16% from the previous week, potentially reaching 600,000 metric tons. Soybean futures have been further impacted by an 8% week-over-week drop in export sales and increased competition from Brazil. Wheat futures have shown mixed activity, influenced by rainfall in China.
In other agricultural news, Romania is anticipating strong wheat and barley yields as harvest approaches. However, concerns persist regarding potential rain and storms that could affect the timing and quality of the harvest, possibly leading to a greater proportion of output being classified as feed-grade material. Separately, as of May 31, US pasture and range land conditions have shown improvement, with 30% rated good-to-excellent, a 1% increase from the previous week, according to USDA-NASS data. Market participants are awaiting the upcoming USDA report for further insights.