NO YIELD DAMAGE YET IN U.S. CORN, BEANS - USDA
The U.S. corn and soybean crops are
in mostly good condition and have not suffered any yield
deterioration from recent hot, dry weather, Agriculture
Department and private weather and crop analysts said.
    "I don't see any reduction in yield potential yet," Norton
Strommen, chief meteorologist at USDA told Reuters. "The (corn
and soybean) crop is actually in mostly good condition and is
progressing ahead of normal, which is good," he said.
    Abnormally hot, dry weather in midwestern crop areas
sparked a sharp rally in Chicago futures today, causing new
crop soybeans to advance the 30 cent daily limit to 6.14 dlrs
per bushel and September corn to go up 12 cents to 2.81 dlrs.
    "This rally is amazing," a private crop analyst said. "Corn,
soybeans and wheat are in excellent condition."
    The USDA meteorologist said the only effects of the warm,
dy weather on crops so far has probably been to speed up
development of the crop, which will help the crop better cope
with stress later in its more critical growing period.
    "What this weather will do is simply push the crop towards
rapid development of a good, deep root system to draw on the
subsoil reserve. It actually strengthens the crop to go through
a little stress early on," Strommen said.
    Strommen noted that subsoil moisture is in good shape in
most growing areas.
    Strommen and other private crop analysts noted corn and
soybeans will not enter their critical growth stages until July
and August.
    But because of its early development this year, Strommen
said the midwestern corn crop could enter its reproduction
period by the first of July.
    "Weatherwise, if the market is truly concerned about corn or
soybeans, it should be more concerned about corn. But the
dryness still has to last for another two to three weeks," an
analyst said.
    Soybeans, on the other hand, can withstand several more
weeks of dryness before yields start deteriorating, crop
analysts agreed.
    August and September are the critical yield-producing
months for soybeans, Strommen said.
    "The sole purpose of the soybean plant is to simply survive
during May, June and July until the August rains which
determine the crop," a crop analyst said.
    Some analysts contend, however, that in certain growing
areas the crop has not been receiving enough moisture to ensure
that there will not be problems later.
    Strommen noted the USDA's current six to 10 day weather
forecast calls for above normal temperatures and below normal
precipitation in much of the corn belt.
    "This opens up all sorts of speculation," he said.
 Reuter
