October 24, 2006

 

US crop progress wrap: corn, soybean harvests lag 5-year average

 

 

The US Department of Agriculture reported Monday (Oct 23) afternoon that the harvesting of US corn and soybean crops are moving at a slightly below-average pace.

 

 

Corn

 

Some 53 percent of the US corn crop was harvested as of Sunday, in line with analyst's expectations of 50 percent-55 percent. The figure is below the 63 percent reported at the same time last year and the five-year average of 57 percent harvested.

 

The slower-than-expected harvest was expected, but it's not a major problem at this point, said Shawn McCambridge, senior gains analyst at Prudential Financial in Chicago. "The harvest is behind in the eastern belt, but this is an area where the crop was in the best shape with stalk quality amid a better growing season compared to the western belt," McCambridge added.

 

In Iowa, 48 percent of the crop was harvested, compared with 57 percent last year and the five-year average of 49 percent. In Illinois, 73 percent of the crop was cut, compared to 87 percent last year and the five-year average of 76 percent. Ohio's crop is 18 percent harvested versus its average of 36 percent.

 

However, the slow pace of Michigan's harvest bears watching as it's the area most likely to be hit first with winter weather, McCambridge said.

 

The Michigan crop is 23 percent harvested compared with its average of 35 percent.

 

Meanwhile, the US corn crop was rated 63 percent in the good-to-excellent category, up 2 percentage points from last week.

 

 

Soybeans

 

Some 76 percent of the US soybean crop was reported harvested, below 85 percent a year earlier and the five-year average of 78 percent.

 

Analysts expected the harvest to be between 77 percent-81 percent complete.

 

"The overall pace of harvesting is about average, but rains have tempered the forward progress of harvesting in Indiana and Ohio," said John Kleist, analyst with Top Third Ag Marketing in Chicago.

 

In Indiana, 58 percent of the crop was harvested, compared with 49 percent last week and the five-year average of 77 percent. Ohio's soybean crops were reported 53 percent harvested, up from last week's 42 percent, but well below the five-year average of 74 percent.

 

"Its been pretty wet in the eastern belt in the past couple of weeks, but in areas where harvest conditions have been favourable, the cutting pace has made good progress," Kleist added.

 

In Iowa, 91 percent of the crop was harvested, on par with the five-year average of 91 percent. In Illinois, 82 percent of the crop was harvested, in line with the five-year average of 83 percent.