Crop ratings out yesterday afternoon were very bearish as corn increased 4% G/E to 70% which is only 1% behind the record crop of 2004. Kansas, Michigan, Iowa, and Nebraska all up for the week with Illinois down 1% to 61%. Illinois is now 13% behind last year's rating while the nation is 6% above. Crop conditions also showed that the crop is still well behind normal for maturity and not much is made up late in the growing season. Markets started the day modestly higher as crude bounced up to $75/barrel then quickly retreated to $72 and in doing so took corn, soybeans, and wheat lower.
New crop corn and bean basis continue to be strong as limited cash sales and the inability of the futures market to go higher has limited sales vs a strong first quarter export program that is on the books.
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