March 16, 2005

 

US harvest prospects weigh on some new crop

 

 

New-crop corn, grain sorghum and winter wheat basis has weakened, as US producers begin to forward-contract portions of their prospective 2005 harvest, amid generally good crop condition ratings and bountiful soil moisture supplies.

 

Feed Grain

 

Basis values for fall delivery of cash corn and milo have dipped by as much as 2-5 cents at grain terminals tracked by Dow Jones Newswires during the past two weeks, as merchants and farmers recognize good yield prospects provided by plentiful soil-moisture reserves in most areas.

 

Soybean basis has held firm, likely in reaction to uncertainty about the impact that the emergence of Asian rust may ultimately have on 2005 production in the US.

 

The Texas Agricultural Statistics Service said Monday that 12 percent of the state's corn crop and a 10th of all grain sorghum had been planted entering the week.

 

"Land preparation was active in many areas during mid to late week," said the agency. "Planting moved ahead. Emergence of earlier planted corn progressed as temperatures warmed."

 

Dry, windy weather also dominated in other areas of the Deep South, such as Georgia.

 

"These conditions were a welcome sight for those producers waiting for fields to dry out, so they could resume field preparation and planting," said the Georgia Ag Statistics Service.

 

Initial efforts at corn planting began in Georgia last week, with soil-moisture supplies currently rated as adequate to surplus in 93 percent of all fields.

 

Wheat

 

Basis premiums for July-August delivery of hard and soft red winter wheat have largely declined 1-5 cents a bushel at major terminals across the Midwest, northern Plains and Deep South this month - again response to brighter new-crop prospects.

 

Plentiful moisture reserves produced an improvement in winter wheat crop conditions across Georgia, New Mexico and Texas last week. Ninety-five percent of all New Mexico wheat fields are currently rated in good or excellent condition.

 

"(Wheat) growth and development showed signs of improvement during the week as warmer temperatures and plenty of sunshine was present in all areas," said the Texas Ag Statistics Service. "Statewide, wheat condition was rated at 82 percent of normal, compared with 55 percent last year."

 

Although crop scores for HRW in Montana and the leading state of Kansas have declined in recent weeks, the amount of wheat in good or excellent condition is still approximately double that of year-ago levels, at 48 percent in Montana and 69 percent in Kansas.