Impact of COVID-19 on Agriculture

Crop Conditions Remain Resilient

Market Intel / July 31, 2018

For the third week in a row, USDA has announced in its Crop Progress report that 72 percent of the U.S. corn crop is in good-to-excellent condition. The current 72 percent rating is 11 percentage points above last year’s rating of 61 percent. For further perspective, the five-year average for corn crops of 69 percent good-to-excellent places today’s static condition of 72 percent as the best in years. USDA reported 9 percent of the corn crop in poor to very poor condition, which remains in line with the past three weeks as well.

Analysts predicted corn and soybean crop conditions to decline slightly, about 1 percent for the week ending July 29, citing the dryness spreading throughout the Midwest. However, conditions have remained robust, with soybeans ratings holding at 70 percent good-to-excellent condition. The current rating is also 11 percentage points higher than the prior year’s level and 4 percentage points above the five-year average of 66 percent. Eight percent of the soybean crop is in poor or very poor condition, unchanged from the prior week. Figure 1 and Figure 2 highlight the progression of this year’s good-to-excellent crop conditions.

Contact:
Megan Nelson
Economic Analyst
(202) 406-3629
megann@fb.org
twitter.com/@MeganRNelson1
 

Share This Article

Credit: iStockPhoto 

Today we face a different sort of inflation (September’s consumer price index was up 5.4% from last year), with specific disruptions cascading throughout the economy, leading to general shortages and price increases. This is similar in many ways to inflation during wartime, when governments take dramatic economy-distorting steps to deal with the crisis, the shape of demand changes suddenly, and certain production and trade flows are interrupted.

Full Article
Credit: Arkansas Farm Bureau, used with permission.  

Released on Sept. 30, USDA’s Quarterly Grain Stocks Report showed that as of Sept. 1 old-crop corn and soybean inventory levels had dropped, compelling USDA to update supply and demand expectations in the October World Agricultural Supply and Demand Estimates, released on Oct. 12. Much higher-than-expected soybean stocks and the subsequent adjustments made for old and new crop supply and demand pushed soybean prices for the 2020/21 marketing year average and the 2021/22 marketing year down sharply.

Full Article