The crop conditions for corn and soybeans have deteriorated further in the U.S., according to data published by the U.S. Department of Agriculture on June 18th. Only 63% of corn harvest is evaluated as “good” to “excellent”, against 66% a week earlier and 70% last year. For soybeans, these figures rise to 56%, against 60% last week and 68% in 2011.
These evaluations suggest lower yields than the previous forecast, which expected a U.S. corn production of 375.7 million tonnes and 87.2 million tonnes of soybeans for 2012-2013. Crops, especially in the Midwest, are affected by dry weather.
Fears of worse than expected yields contributed to a rebound in prices on the Chicago Board of Trade: the July corn contract due traded at 613.2 cents per bushel yesterday, nearly 6% higher than the Friday’s closing price, while July soybeans contract was up 4% at 1,437 cents per bushel.