US soybean planting close to finish, crop quality deteriorates further: USDA

US soybean farmers have kept the pace of planting firmer than last year and the five-year average amid dry conditions in the Midwest, according to the US Department of Agriculture's crop progress report, although crop quality deteriorated further than last week.

Poor US soybean crop quality is likely to cut the overall productivity forecast and stoke supply concerns.

The farmers have planted 97% of the intended soybean acreage of 87.6 million acres for the 2021-22 marketing year (September-August) through June 20, up 1 percentage point on the year and 3 points above the five-year average, according to the USDA's crop progress report released June 21.

According to the report, 91% of the planted crop has emerged, compared with 88% last year and the five-year average of 85%.

A faster-than-average soybean planting is likely to support the yield and overall production forecast of nearly 120 million mt for the 2021-22 marketing year, up 7% on the year.

However, crop quality has deteriorated from the week ended June 19 amid prolonged heat conditions since late May, which could be a concern for farmers.

Out of the planted beans, 60% were rated as good-to-excellent, down 2 points on the week, the USDA said.

Although there have been a few showers in some parts of the Midwest in recent days, most of the regions remains parched.

In the Corn Belt, a cold front was sparking widespread showers and thunderstorms, extending from the lower Great Lakes region into the lower Missouri Valley, the USDA's latest weather report said June 21. Meanwhile, cool, dry air is overspreading the heart of the Midwest, it said.

Despite the cool weather, rain is still needed in the northern Corn Belt to help sustain summer crops that will soon be entering the reproductive stage of development, the weather report said.

If the dryness stretches to another couple of weeks, then the crop quality is likely to be negatively impacted, the USDA said.

The weather forecast until the end of June suggests mixed conditions in the Midwest -- the top soybean-producing region accounting for over 80% of total US output.

Late in the week ending June 26, a new cold front should spark another round of showers across the Plains, Midwest, and mid-South, with some of the most significant rain expected in the middle Mississippi Valley, the USDA said.

Below-normal rainfall in most areas from the Pacific Coast into the upper Midwest should contrast with wetter-than-normal weather across much of the South, East, and lower 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.

While soybean planting has finished in Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, Ohio and Wisconsin, most other states should be able to complete the process by the week ending June 26, the data showed.

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

According to S&P Global Platts Analytics, the US soybean production forecast for 2021-22 was seen close to 122 million mt, up 8% on the year and one of the largest volumes in a decade.

The US is the world's second-largest soybean producer and supplier, behind Brazil.