Corn conditions remain in a dismal state and at this point in the growing season, there is little chance of improvement. Farmers across the Corn Belt will have to accept lower yields and/or insurance payments due to the prolonged drought.
As of August 6, 2012 corn conditions have declined to 23% of the crop in good or excellent condition, a 1% drop from last week and a 37% decline from last year at the same time. 26% of the corn was dented and only 6% was dented at the same time last year. As of the second week of August, 61% of the corn crop is doughing, compared to the five-year average of only 30%. Corn prices decreased by 2.1% over the past week ending at $8.03 per bushel and year-over-year prices have increased by 15.9%.
As of the second week of August, soybean conditions were at 39% in very poor or poor condition compared to 13% a year earlier. Soybeans in good or excellent condition remained unchanged from last week at 29%. 71% of soybeans have set pods, a 25% increase from a year prior. Soybean prices decreased by 6.8% over the past week ending at $16.07 per bushel and year-over-year prices increased by 20.7%.
Spring wheat conditions are at 63% in good or excellent condition and only 11% in poor or very poor condition, unchanged from last week. 47% of the spring wheat has been harvested as of August 6, 2012. Wheat prices ended the week at $8.93 per bushel, a 2.3% decrease from last week. Year-over-year wheat prices have increased 31.5%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.