Baird analyst Mircea (Mig) Dobre provided the following quick take following this week’s USDA Crop Progress report. 

The percentage of Corn crop rated good-to-excellent (G/EX) increased 1% week-over-week to 72% (flat year-over-year). Soybeans were down 2% to 66% (-4% year-over-year). 

“Heavy rain is in the forecast this week across the corn belt, crop emergence is better than or at average for most commodities,” he says. “Corn (nearing $4.30/bushel) and Soybeans ($10.70/bushel) remain below levels needed for incremental equipment investment.”

Dobre notes that current crop conditions are consistent with strong yield forecasts, for now, and commodity prices are likely to remain pressured.  

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