World Ag Markets Keep Busy

CHICAGO - Jun 6/06 - SNS -- Trading continued at a relatively busy pace on international agricultural commodity markets with Taiwan buying wheat and Japan announcing two tenders for food grains and a buy-sell tender covering feed grains.

Ongoing demand is helpful to markets which are becoming somewhat more optimistic about crop prospects in North America and cautiously optimistic the Australia drought will be saved by timely rains as was the case last year.

The USDA's weekly crop progress reports showed continued deterioration of the winter wheat crop, led by Kansas, which showed 53% of its crop now in poor to very poor from 49% last week and 44% last year. The crop is now 9% harvested.

The spring wheat crop was rated 69% good/excellent compared to 73% last week and 78% last year. The 16 year average for this time of year is 72%. The percentage of the crop rated poor/very poor stood at 7% compared to 4% last week and 2% last year. The 16 year average for this time of year is 10%.

U.S. corn crops were rated 71% good/excellent compared to 70% last week and 64% last year. The 16 year average for this time of year is 64%. Over the last 16 years, the highest percent rated good/excellent for this time of year was 81% in 1991 while the lowest was 46% in 1992. The percentage of the crop rated poor/very poor stood at 5% compared to 5% last week and 7% last year. The 16 year average for this time of year is 7%.

Soybeans in the United States are rated 70% good/excellent compared with 62% last year. The 16 year average for this time of year is 63%. The percentage of the crop rated poor/very poor stood at 5% compared to 7% last year. The 16 year average for this time of year is 7%.

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