US soybean planting at its homestretch, crop quality good: USDA

US soybean farmers have quickened the pace of planting from last year and the five-year average amid favorable conditions in the Midwest, according to the US Department of Agriculture's crop progress report, with crop quality assessed as good overall.

A faster than average soybean planting, coupled with expectations of good crop quality, are likely to support the yield and overall production forecast of nearly 120 million mt for the 2021-22 marketing year (September-August), up 7% on the year.

The farmers have planted 90% of the intended soybean acreage of 87.6 million acres for the 2021-22 marketing year (September-August) through June 6, which is up six percentage points on the year and 11 points above the five-year average, according to the USDA's crop progress report released on June 7.

According to the report, 76% of the planted crop have emerged, compared with 65% last year and the five-year average of 59%.

Since the US soybeans have been planted in a timely manner, the crop quality is expected to be better than last year, or the 5-year average. Typically, in the US, soybean crops are likely to have high yields if they are planted before June 20.

Out of the planted beans, 67% were rated as good-to-excellent, down five percentage points on the year and another 27% were rated as fair, up 3 points year on year, the USDA said.

In the Corn Belt, hot, mostly dry weather prevailed across the upper Midwest, the USDA's latest weather report said on June 7.

The prevailing dry conditions in the Corn Belt -- the top soybean producing region -- has so far helped in soy planting and emergence across the Midwest. However, if the dryness stretches to another couple of weeks, then the crop quality is likely to be negatively impacted.

Rains are very likely in the coming days across the Midwest, which should be favorable to the planted soybeans.

A cold front marching eastward from the Pacific Northwest will begin to interact with the pool of moisture, leading to locally heavy thunderstorms in the north-central US, the USDA said. Five-day rainfall totals could reach 1 to 5 inches from the mid-South into the Ohio Valley and middle Atlantic States, while 1- to 2-inch amounts may occur across portions of the northern Plains and far upper Midwest, it said.

Soybean planting in the US generally begins by mid-April. Sowing in the Midwest starts in late April after recovering from the winter freeze and wet soil.

Minnesota has completed planting soy, which is up two percentage points on the year, followed by Iowa and Nebraska at 98%, up one point and steady on the year, respectively, the data showed.

The USDA has surveyed 18 soybean-producing states in the country, which accounted for 96% of the 2020-21 soy acreage, the report said.

According to Platts Analytics, the US soybean production forecast for 2021-22 is seen at 121 million mt, up 7.5% on the year and one of the largest volumes in a decade.

The US is the world's second largest soybean supplier behind Brazil.