Corn and soybean conditions declined by another 8% this week due to continued hot and dry weather across the Corn Belt. Farmers are starting to realize that a large chunk of their corn crop has been lost to the heat wave.
As of July 9, 2012 corn conditions have again declined to 40% of the crop in good or excellent condition, compared to 48% last week and 69% last year. 50% of the corn was silking which is above the five-year average of 19%. Corn prices increased by 12.0% over the past week ending at $7.75 per bushel and year-over-year prices have increased by 20.7%.
As of the second week of July, 44% of U.S. soybeans have bloomed which is ahead of its five-year average of only 25%. Soybean conditions worsened as 27% is in very poor or poor condition compared to 22% last week. Soybeans in good or excellent condition have decreased by 5% from last week to 40%. Soybean prices increased by 8.7% over the past week ending at $16.65 per bushel and year-over-year prices increased by 23.7%.
Of the six primary spring wheat producing states, 88% of the wheat has headed compared to only 24% at the same time last year. Spring wheat conditions are 66% is in good or excellent condition and only 7% is in poor or very poor condition. As of the first week of July, 75% of the winter wheat has been harvested, compared to the five year average of only 56%. Wheat prices ended the week at $8.10 per bushel, a 7.4% increase from last week. Year-over-year wheat prices have increased 24.4%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.