Only 37 percent of the US winter wheat crop was rated in good to excellent condition as of April 3, compared with 65 percent in that category a year ago, according to the USDA's first weekly crop progress and condition report of the season.
Light precipitation last week in Kansas, the top wheat producing state, did little to improve the crop which was rated at only 31 percent good to excellent condition, according to USDA. A year ago, 69 percent of the crop was in that category.
Drought conditions also dragged down ratings of winter wheat in the major production areas of Texas, Oklahoma and Colorado, USDA said.
"In a lot of the (soft red winter wheat) areas and in the (Pacific Northwest) the conditions were the same or better than last year, but there is a pretty clear problem in the lower southern Plains," said Country Hedging analyst Tim Emslie.
Hot weekend weather in the southern Plains wheat belt further stressed a crop already suffering from too little precipitation since last autumn.
"We're dependent on this southern Plains crop and we're going to probably end up not harvesting a fair amount of it. Over the next 10 days, you're going to have a lot of insurance agents zeroing out a lot of that crop," Emslie said.
Corn planting was not yet under way in the major production areas of the US Midwest, but seeding in several southern states was progressing well.
In Texas, 54 percent of the corn crop was planted as of Sunday versus 40 percent last year and a 53 percent five-year average.
Corn seeding was 1 percent completed in Kansas as of Sunday versus 1 percent a year ago and the five-year average of 2 percent. Oklahoma's crop was 14 percent planted, but no year-ago comparison was available.
USDA said it expected the first US corn planting progress table to be released next Monday.