USDA Reports Unexpected Drop in Corn and Soybean Quality

The latest USDA crop progress report has revealed an unexpected drop in corn and soybean quality ratings. As of August 2, only 61% of the corn crop is now rated good to excellent, down two percentage points from last week's numbers. Analysts had expected this figure to hold steady between 61% and 64%. Another 25% of the crop is rated fair, while 14% is considered poor or very poor, a two-point increase from last week.

Physiologically, nearly all (90%) of the corn crop has now reached the silking stage, ahead of the prior five-year average of 87%. The soybean crop also saw quality ratings drop, with 63% rated good to excellent through August 2. Analysts had predicted a one-point improvement in this figure.

Spring wheat crop conditions exceeded expectations, however, with 55% of the crop now rated good to excellent. In contrast, winter wheat harvest completion slowed slightly, with only 86% complete as of Sunday. This is below the average trade guess of 89%, but still in line with the prior five-year average.