May 13, 2008

 

US farmers planting corn on the double, still lagging behind 

 

 

US corn planting remained behind average last week, although solid planting progress was made in key growing states, the USDA said Monday  (May 13,2008) in its weekly crop progress report.

 

Corn planting nearly doubled in a single week for key states, with Iowa corn planting reaching 46 percent up from just 18 percent the previous week.

 

US grain futures will take note of the report, but weather forecasts will continue to be the main driver of the markets, said John Kleist, analyst/broker for Allendale.

 

"Most reactions are going to be geared toward near-term weather," he said. 

 

The USDA said 51 percent of the corn crop was seeded as of Sunday, up from 27 percent the previous week but below the five-year average of 77 percent.

 

The pace of progress was within trade estimates and should be seen as "neutral as far as expectations," Kleist said.

 

Progress was made in key states, although they still remain behind average. Iowa's crop was 46 percent planted, up from 18 percent a week earlier but below the average of 82 percent, according to USDA.

 

In Illinois, 60 percent of the crop was planted, up from 28 percent the previous week but down from the average of 88 percent, according to USDA. Seeding was 61 percent complete in Indiana, up from 36 percent last week but down from the average of 72 percent.

 

"It's just amazing once they get any sort of window how fast they can get (the crop) in," Kleist said about corn farmers. "The market will be back to watching the very near-term forecast to see if there is still a window left to play more catch up in the immediate term."

 

Planting in Missouri and Minnesota are still held up by cold and wet conditions, Kleist said. Missouri's crop was 34 percent planted, compared to 23 percent last week and the average of 83 percent, while Minnesota's crop was 32 percent planted, compared to 8 percent last week and the average of 82 percent.

 

USDA said 11 percent of the corn crop was emerged, up from 4 percent last week but down from the average of 33 percent. Iowa's crop was 2 percent emerged, compared to the average of 29 percent. Illinois' crop was 12 percent emerged, compared to the average of 58 percent, and Indiana's crop was 19 percent emerged, compared to the average of 35 percent.