Soybeans have given back a large portion of the late-June and early-July gains, but I still believe there is room for price appreciation to the upside. We currently have 60% of our estimated production priced, but with major production uncertainties its tough to get a whole lot more aggressive, especially with an entire month of August weather still ahead of us.
There's nothing really NEW to report as the USDA elected to leave the weekly crop conditions unchanged. We've all heard time and time again that South America is sitting on large supplies and Chinese demand is being heavily questioned. We've also heard a million times that U.S. demand moving forward, especially form an export perspective is going to be under heavy scrutiny.
On the flip side, I believe U.S. production still remains a major question mark and the uncertainty could certainly provide us another round of opportunity to reduce more price risk on a late-inning rally.
Current Look At Soybean Crop Conditions: The weekly overall crop conditions for soybeans in the U.S. were left unchanged at 62% rated "Good-to-Excellent". There's just over 8.5 million acres estimated to be in "Poor-to-Very Poor" condition which as a percentage is over double last year at this time, 11% vs. 5% Below are the recent specifics: KY +4 @ 74%; KS +3 @ 51%; ND +2 @ 82%; TN +2 @ 80%; WI +2 @ 84%; AR +1 @ 62%; MN +1 @ 79%; MS +1 @ 75%; NE +1 @ 72%; SD +1 @ 77%; NC "unchanged" @ 63%; IL -1 @ 47%; IA -1 @ 77%; OH -1 @ 41%; IN -2 @ 40%; MI -2 @ 58%; LA -3 @ 68%; MO -3 @ 29.