The US released their crop condition report which told us the following:

Winter wheat is 30% good to excellent, unchanged wow, and down from 34% yoy. The crop is 44% poor to very poor, unchanged wow and up from 42% yoy. The crop is 43% harvested, up from 33% wow and up from 40% yoy, but below the 5 year average of 48%.
Spring wheat 70% good to excellent, down from 71% wow and up from 68% yoy. The crop is 26% headed, up from 10% wow and up from 16% yoy, and below the 5 year average of 29%.
Corn is 75% good to excellent, up from 74% wow and up from 67% yoy. The crop is 5% silking, up from 3% yoy and below the 5 year average of 9%.
Soy is 72% good to excellent, unchanged wow, and up from 67% yoy. The crop is 94% emerged, up from 90% wow and yoy, and unchanged from the 5 year average. The crop is 10% blooming, up from 3% yoy and unchanged from the 5 year average.

Perhaps of more relevance is the “fallout” from yesterday’s stocks and plantings report which saw market prices plummet as traders sold in huge volumes on the back of what can only be described as one of the most bearish reports we have seen. Clearly some degree of risk premium remains in pricing, particularly nearby, but focus is now fairly and squarely on the looming new crop and record, or close to record, harvests, which have to be viewed in the light of growing global stocks.

The start point was June 1st corn and soybean stocks reported to be larger than expected, which paved the way for record breaking soybean plantings with potentially big yield and a corn crop which appears to be flourishing in near ideal conditions. Buyers who have stood back and sellers who booked early bids look to be the current winners.