June 1, 2012

 

Dryness hits US corn conditions, benefits soy

 

 

The condition of the US corn plantings worsened last week due to warm, dry weather in some parts of the Midwest and South that contributed to the plants' stress.

 

Spring-wheat ratings rose, and soy planting moved closer to completion.

 

About 72% of the corn crop was in good or excellent condition as of May 27, down from 77% a week earlier, while up from 63% from a year earlier, the USDA said in a report. An estimated 92% of the seeds emerged from the ground, up from 76% a week earlier and the average in the previous five years of 69%.

 

"Everyone is worried about the hot, dry weather pattern in May continuing into June," Emerson Nafziger, an agronomist at the University of Illinois in Urbana, said. "I doubt we have compromised our yield potential at this time with timely rain next month."

 

The report was issued after the close of trading on the CBOT. Corn futures for July delivery fell 2.8% to settle at US$5.625 a bushel. The most-active contract has fallen 11% this month on speculation that farmers will harvest a record crop this year.

 

Production will jump 20% to 14.79 billion bushels as farmers plant the most acres since 1937 and yields expand to a record 166 bushels per acre, the USDA said on May 10.

 

Based on the report, yields may average 165.1 bushels this year, down from 169 bushels a week earlier, according to David Salmon, the owner of Weather Derivatives in Belton, Missouri.

 

About 89% of the soy crop was planted, compared with 76% a week earlier and the five-year average of 61%, the USDA said. Plant emergence rose to 61% from 35% a week earlier and 22% a year earlier.

 

The spring-wheat crop rated good or excellent as of May 27 rose to 79% from 74% a week earlier.

 

The winter-wheat crop was rated 54% good or excellent as of May 27, compared with 58% a week earlier after dry, hot weather stunted plant growth from Texas to Ohio, the USDA said. A year earlier, 33% got the top ranking.

 

An estimated 57% of the cotton crop was in good or excellent condition, the government said in its first assessment of this year's crop.