December 15, 2009

 

US corn harvest slowly drawing to an end

 

 

The USDA said that the corn harvest was 92% complete as of Sunday, up from 88% the prior week. There is no prior year-average to compare to, as the harvest is typically complete by this time of year.

 

Traders were expecting around 92% to be harvested, although estimates varied from 90% to 95%.

 

The Illinois crop is 90% complete, compared to the average of 100%, Iowa is 96% complete, and Wisconsin's harvest is only 85% complete.

 

South Dakota remains well behind, but made the most sizable jump of the lagging states, which was 82% complete versus 73% last week. The five-year average for South Dakota is 99%. North Dakota is only 60% complete, up from 53% last week. There is no prior year-average to compare to, as the harvest is typically complete by this time of year. "Overall the report showed harvest progress as expected, as wet, snowy Midwest weather left most areas with a slow go of it," said Shawn McCambridge, senior grains analyst with Prudential Bache in Chicago.

 

South Dakota was able to expand its harvest, as the area received high winds but avoided snow drifts, McCambridge said.

 

The report did not provide any new features that will surprise the market, with progress across the key states of Illinois and Iowa falling into the line of expectations, traders said.

 

"The ground seems firm enough that harvest progress should move along this week to 95% to 97% complete, allowing the market to move beyond trading weather," McCambridge added.

 

T-storm Weather said a major snowstorm will not affect corn areas over the next week. Temperatures will become much milder during the middle of the week across these areas, but turn substantially colder this weekend. The centre of the coldest weather focuses on the central and eastern Corn Belt.

 

USDA will again extend its crop-monitoring activities for corn and cotton by another week. This is the third time the USDA's National Agricultural Statistics Service has issued a one-week extension to monitor late-harvested crops.

 

On Dec. 21, NASS will release data on corn and cotton harvest progress, the agency said in a notice on the current crop progress report, issued Monday.

 

Weekly crop progress reports usually conclude in November, but delayed crop plantings in the spring and wet conditions during the fall led to a later-than-normal harvest of US crops. As a result, NASS chose to extend its reporting period for certain crops.