Corn, Soybean Futures Tumble on Weak Crop Conditions

Corn futures are under pressure due to technical resistance and a decline in crop conditions. The USDA rated the corn crop as 61% good to excellent, down two percentage points from the previous week. The Pro Farmer Crop Condition Index declined 3.72 points on the week and is 24.18 points below the same time last year.

Crop consultant Dr. Michael Cordonnier left his U.S. corn yield unchanged at 181.0 bu/ac with a neutral-to-lower bias. Southeast Asia is expected to see drier-and warmer-than-normal weather conditions from August through October, which may impact crop development in the region.

Soybeans are also under pressure, with nearby futures trading around $11.70 due to technical selling and weak cash fundamentals. The USDA rated the soybean crop as 63% good to excellent, unchanged from the previous week, but the Pro Farmer Crop Condition Index declined 0.77 points to 364.32.

Dr. Cordonnier maintained his U.S. soybean yield estimate this week at 52.0 bu/ac with a neutral-to-lower bias, citing favorable weather conditions for crop development. Winter wheat futures and HRS futures are also weaker due to technical resistance/support limiting gains and losses.