May 23, 2006

 

US corn and soy plantings gather pace

 

 

The US Department of Agriculture reported Monday (May 22) afternoon that US corn and soybean plantings were in line with analysts' expectations.

 

The first crop ratings of the season revealed that the US corn crop was in better shape than a year ago.

 

 

Corn

 

The USDA reported that 92 percent of the US corn crop was planted as of Sunday, May 21, slightly below last year's 94 percent but above the five-year average of 87 percent.

 

Analysts and floor traders expected the crop to be 90-94 percent planted.

 

The percentage of the crop planted is so high and above average that it really doesn't have much of an effect on the market, said John Kleist of Kleist Ag Consulting of Arlington Heights, Illinois.

 

And because of the race to plant early, emergence is running above average as well and that is pretty much in line with the relatively quick pace of plantings, he added.

 

USDA reported that 66 percent of the crop had emerged compared to 63 percent last year and the 5-year average of 60 percent.

 

"The crop seems to be in pretty good shape," he said.

 

In Illinois, 73 percent of the crop is rated in good-to-excellent condition, and in Iowa, 68 percent of the crop is rated good to excellent.

 

The only problem area is Indiana and the state experienced excessive wetness earlier that impacted planting, but farmers still have time to catch up, he noted.

 

In Indiana, 46 percent of the crop was rated in good-to-excellent condition.

 

 

Soybean

 

The USDA reported that 55 percent of the US soybean crop had been planted compared to 63 percent last year and the five-year average of 51 percent.

 

Analysts had expected the percentage of the crop planted between 50-60 percent.

 

Seventeen percent of the crop has emerged compared to 25 percent in 2005 and the five-year average of 23 percent.

 

The USDA did not provide any rating of the crop.

 

Plantings are near the high end of expectations, which makes it similar to corn, Kleist said. Emergence is running a little bit behind but it's still too early to be worrying about that, he said.

 

Dry weather is coming in this weekend as are warmer temperatures, so the market will get a better look at that next week, he added.