Bad weather conditions impair plant progress and harvest in the US

The figures published by the US Department of Agriculture (USDA) on Monday evening confirmed the market's expectations that the adverse weather conditions are having a negative impact on plant progress and harvesting. 

Last week's heavy rainfall in the US Midwest and South resulted in delays to the harvesting of winter wheat. At 4% nationwide, harvesting progress lagged well behind the five-year average figure of 12%. Harvesting is considerably behind schedule in the states of Oklahoma and Texas in particular, which were hit hard by the rainfall. The condition of plants has also deteriorated. 

According to the USDA, only 43% of winter wheat plants were rated as being in "good to excellent" condition, which is 1 percentage point below the previous week's assessment, notes Commerzbank. 

In Kansas and Missouri, the rain has meant that only a third of the planned acreage has been sown with soybeans so far. The corn and soybean plants already in the ground have been unable to grow significantly, and their condition is comparatively poor. Low-lying fields have been flooded in some cases and now have to be replanted. 

Nonetheless, the condition of corn plants nationwide - with 74% rated "good to excellent" - was still in line with the five-year average. 69% of soybeans nationwide are rated "good to excellent", which is 2 percentage points below the previous week but still 1 percentage point above the five-year average, notes Commerzbank.