The Chicago Board of Trade saw corn futures edge up on Tuesday after the U.S. Department of Agriculture released its weekly crop condition report on Monday that showed a slight decline in overall crop health.
According to the USDA, 60% of the U.S. corn crop was rated in good-to-excellent condition as of Sunday. That figure is down one percentage point from the previous week. The agency noted that this is the lowest good-to-excellent rating reported for the 33rd week of the calendar year since 2023.
Market participants reacted to the report with modest buying pressure. CBOT December corn was last reported up 2-3/4 cents at $4.92-1/4 per bushel, following intraday gains in the range of 2 to 3 cents per bushel earlier on Tuesday.
Additional field-level observations surfaced from scouts conducting an annual tour of major producing states. Those scouts reported on Monday that corn yield prospects in South Dakota are lower than those recorded for last year and are also below the three-year average. The scouts attributed the weaker prospects in South Dakota to a summer characterized by hot and dry conditions.
The combination of a reduced USDA condition rating and the scouts' on-the-ground findings contributed to the upward movement in futures prices, reflected in the December contract's gain.
Reporting note: The USDA condition rating cited reflects assessments as of Sunday and was published in the agency's weekly report released on Monday.