The state of soybean and corn sowings in the US is deteriorating

As market participants expected, the condition of American soybean and corn sowings deteriorated in a week, given the increased temperature in the Midwest, as well as downpours in certain regions.By July 1, the share of soybean in good and excellent condition dropped to 71% (73% a week earlier). Last year, by the reporting date, it was 64%.The share of maize crops in good and excellent condition dropped to 76% from 77%. By the reporting date last year it was at the level of 68%.However, this information was unable to support futures prices in Chicago, as the potential for soybean and corn yield remains high.For the week, the value of the nearest corn futures fell by 5.5% (-17% per month), and the price of soybean futures lost 3.6% (-18% per month), analysts say.On wheat futures, pressure is exerted by harvesting work on winter wheat, as well as the good condition of spring wheat sowing. By July 1 winter wheat has been threshed on 51% of the area (+ 10% per week), which is higher than the average five-year value (49%). The condition of spring wheat remained at the level of last week - 77%. This result is much higher than last year (37% in 2017). Over the week, the cost of the nearest wheat futures in Chicago fell by 3% (-9.6% per month). In addition, pressure factors were also low rates of contracting American wheat at the start of the new season. From the beginning of the new export season to June 21, the actual shipments of US wheat are 50% lower than last year, and the volume of contracting is less by 24%.
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