August 28, 2012

 

The USDA releases its latest update on harvest in its weekly crop progress and conditions report on Monday (Aug 27) afternoon at 3 p.m. CDT (2000 GMT).

 

A week ago, USDA pegged corn harvest at 4% complete, a record for August.

 

"Corn is still wet," said Shawn McCambridge, grains analyst at Jefferies Bache. "If you can leave it drying in the fields, you can save the drying costs. They are going to do that as long as field losses are not mounting."

 

The report was not expected to show that any progress was made in soy harvest but the crop was the most mature on record for this time of year. About 9% of the soy crop was expected to be dropping leaves compared to the five-year average of 6%, according to the survey. A year ago, only 2% of the soy crop was dropping leaves.

 

Some recent rains in the US Midwest were seen slowing farmers' efforts to harvest corn. The rains arrived too late to boost harvest prospects for the drought-stricken crop but could add to the drying costs farmers have to pay if they cut the corn in its current condition.

 

"Moisture levels are too high," said Mike Zuzolo, president of Global Commodity Analytics & Consulting in Lafayette, Indiana. "The moisture is still running 29-30%."

 

Despite the moisture, some farmers may start running their combines to harvest corn and reduce the risk of aflatoxin further reducing their yields. Expectations for a small harvest also have buoyed hopes that grain terminals will offer discounts on drying costs as supplies at elevators and processors run thin, analysts said.

 

Fallout from Tropical Storm Isaac, expected to make landfall in either the Mississippi or east Louisiana Gulf Coast as a category one hurricane, is expected to include drought-relieving rainfall for a big chunk of the central and southern US Midwest, an agricultural meteorologist said on Monday (Aug 27).

 

"The big question is how much will later planted soy benefit, it would have helped a lot more if the rainfall came two weeks ago," said John Dee, meteorologist for Global Weather Monitoring. High winds from the storm could knock down corn that suffered from poor stalk development during the summer.