The Good: Corn conditions continue to track a narrow range this year with ratings currently at 71 per cent good to excellent. The current state of the corn crop is much improved from last year, and is now rated right in the middle of the pack when compared from the past five years. There are some concerns about developing dryness in the eastern Corn Belt, but overall conditions in the western Corn Belt are solid. The market is concerned about hot temperatures this week, but this should not be a concern for the corn crop. The crop is entering the sinking stage, but the temperatures are not hot enough to disrupt this critical stage. Unfortunately the positive condition for the corn crop is negative for prices.
The Bad: The spring wheat market has stabilized today after dropping like a stone on Thursday. Crop conditions in North Dakota improved slightly for spring wheat, but not and much as the trade was expecting. Overall spring wheat condition is 70 per cent good to excellent which is up one per cent from last week. Rains during the past week in Montana and North Dakota have certainly helped stabilize crop conditions in the Northern Plains region. Harvest is about a month away in South Dakota. With spring wheat trolling close to contract lows, harvest pressure certainly will try to set new lows.
The Ugly: The cases of COVID-19 contuse to increase in the U.S. and will likely hit the three million mark on Wednesday or Thursday. The stock market remains positive, but the idea that there could be a quick recovery is falling by the wayside. In Canada our economy is beginning to restart, but the big question is how the recent outbreaks will impact the U.S. economy and import demand.