October 11, 2006

 

US crop progress wrap: corn, soy harvest near expectations

 

 

The US Department of Agriculture reported Tuesday (Oct 10) afternoon that the harvest of the US corn was slightly behind the five-year average while soybean harvesting was in line with the five-year average.

 

The report was delayed a day due to the Columbus Day holiday.

 

                        

Corn

 

Twenty-nine percent of the US corn crop has been harvested as of Oct 8, slightly below the 30-35 percent expected by analysts and lower than the 35 percent harvested in 2005 and the five-year average of 32 percent.

 

In Iowa, 17 percent of the crop was harvested compared to 19 percent last year, while in Illinois, 44 percent of the crop was combined, compared to the 56 percent last year and the five-year average of 48 percent.

 

There is little out of the ordinary in the report, said John Kleist of Top Third Ag Marketing. The harvest pace was probably slightly delayed due to rain more than anything else with producers concentrating on harvesting soybeans ahead of corn as well, he said.

 

The crop was rated 61 percent in the good-to-excellent category, unchanged from last week. Ninety-five percent of the crop was rated mature, in line with 2005 and slightly above the five-year average.

 

The harvest pace in corn was probably a little slower than the trade anticipated, said Don Roose, president of US Commodities in West Des Moines, Iowa.

 

Typically this time of year, crop ratings sink a little bit as the crop matures, but they held steady again, and this gives the market a little indication that the government is giving hints of larger yields in Thursday's crop production report, Roose said.

 

 

Soybeans

 

Forty-seven percent of the crop was reported harvested, compared to 56 percent last year and the five-year average of 47 percent. Analysts expected the harvest between 40-45 percent.

 

The soybean harvest is right where it should be and there might have been a push to get the soybeans harvested earlier, said Kleist.

 

In Iowa, 68 percent percent of the crop was harvested compared to 74 percent in 2005 and the five-year average of 58 percent.

 

In Illinois, 47 percent of the crop was harvested compared to 59 percent last year and the five-year average of 54 percent.

 

The soybean harvest in Iowa was pretty aggressive, and nationally at 47 percent complete it's probably a little higher than people anticipated, said Roose. However, this is not a big deal, he noted.

 

Sixty-two percent of the US soybean crop was rated in good-to-excellent condition as of Oct 8, unchanged from a week ago.

 

"Although overall conditions are unchanged on the week, the excellent category increased a point or two in Indiana, Iowa and Minnesota, which shows the bean crop improving to the end of the growing season," Kleist said.

 

The USDA reported 95 percent of the crop is dropping leaves, compared to 96 percent last year and the five-year average of 93 percent.