May 20, 2008
 

US corn and soy planting continues to lag, spring wheat soars

 

 

Seeding and development of the US corn crop continued to remain well below average in the week ended Sunday, with only marginal progress made in some of the top producing states compared to the previous week, according to the weekly progress report issued Monday by the USDA.

 

Soy planting followed suit as it continued to lag behind average while spring wheat seeding soared above the five-year average, according to the USDA report. The good-to-excellent condition rating for winter wheat fell behind average.

 

"Not a whole lot of progress was made," said John Kleist, analyst/broker for Allendale.

 

He stressed, however, that the market would consider the data somewhat supportive to prices given that only minimum expectations were met for both corn and soybean planting.

 

 

Corn

 

The USDA said 73 percent of the corn crop was seeded as of Sunday, up from 51 percent the previous week but below the five-year average of 88 percent.

 

Illinois, Ohio and Indiana were all "bogged" down, said Kleist. "There were still some flooding conditions."

 

In Illinois, 75 percent of the crop was planted, up from 60 percent the previous week but down from the average of 94 percent, according to the USDA.

 

Indiana's crop was 68 percent planted, up from 61 percent the previous week but down from the average of 82 percent, the USDA reported. Ohio was 52 percent planted, up from 50 percent the previous week but down from the average of 89 percent.

 

"They were not able to work the ground into the middle part of the week," said Kleist. "It wasn't the best drying conditions, and you still had cool temperatures."

 

One of the major states that was behind in planting progress managed to plow ahead, but still remains behind schedule. In Iowa, 78 percent of the crop was planted, up from 46 percent the previous week but down from the average of 92 percent.

 

The overall pace of progress was still within trade expectations, however, despite states like Missouri also showing dismal progress. Traders were expecting anywhere from 73 percent to 80 percent of the crop planted nationwide.

 

Chicago Board of Trade corn prices settled weaker on Monday.

 

The USDA said 26 percent of the corn crop was emerged, up from 11 percent last week but down from the average of 56 percent.

 

Minnesota stood out with only 3 percent of the corn crop emerged, up from none last week but down from the average of 46 percent.

 

"Almost every state is only half where it should be," said Kleist.

 

Minnesota is a sore thumb because the soil has failed to warm up sufficiently, he said. Soils need to warm to allow seed germination.