Although corn conditions remain above average, they declined by 5% from last week due to hot a dry weather across the corn belt.
As of May 29, 2012, a total of 92% of the U.S. corn crop has already emerged compared to 59% from a year ago. Corn conditions are very favorable as 72% of the crop is in good or excellent condition compared to 63% a year ago, and only 5% in poor or very poor condition.
As of the fourth week of May, 89% of U.S. soybeans have been planted, a 41% increase from a year ago. Of the 89% planted, 61% have emerged which is an increase from 22% at the same time last year.
Of the six primary spring wheat producing states 96% of the wheat has emerged, compared to the five year average of 68%. Spring wheat conditions are also favorable as 79% is in good or excellent condition and only 2% is in poor or very poor condition.
Winter wheat continues to outperform 2011's conditions with 54% of the winter wheat crop in good or excellent condition; a 21% increase from last year. Winter wheat in very poor or poor condition is at 17%, a 27% decrease from one year prior. As of the fourth week of May, 9% of the winter wheat has been harvested, compared to the five year average of only 1%.
Corn prices decreased by 11.4% over the past week ending at $5.61 per bushel, soybean prices decreased by 1.9% over the past week ending at $13.85 per bushel, and wheat prices ended the week at $6.56 per bushel, a 6.8% decrease from last week. Year-over-year corn prices are down 24.9%, soybeans are up 0.7%, and wheat is down 16.1%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.