CBOT corn jumps as USDA crop rating cut sparks yield concern
CORN•CBOT corn futures rallied after the USDA cut its good-to-excellent crop rating by 3 percentage points to 54% and reported slower-than-expected harvest progress. December corn settled 10¾ cents higher at $5.08 a bushel.
1. Crop rating falls
The USDA said 54% of the U.S. corn crop was rated in good-to-excellent condition as of Sunday, down 3 percentage points from a week earlier. Analysts polled by Reuters had expected a 1-point decline, raising concern that the USDA could lower its U.S. yield outlook in a monthly report on Friday.
2. Harvest progress lags
Farmers had harvested 23% of the crop as of Sunday, below the five-year average of 27% and the average analyst estimate of 26%. Harvesting is expected to ramp up this week as mostly dry weather was forecast for the Midwest. CBOT December corn settled 10¾ cents higher at $5.08 a bushel.
