Agriculture • US Corn Planted At 28%, Normally 65% At This Time
Corn planting races to 28 percent
Angela Bowman, Staff Writer | Updated: 05/13/2013
Farmers took advantage of the break in wet spring weather in a rush to plant crops before the next round of rain.
The USDA’s latest Crop Progress report showed that 28 percent of the nation’s corn has been planted, compared to 12 percent last week. This is lower than the five-year average of 65 percent and significantly behind last year’s speedy pace of 85 percent.
All reporting states made progress from last week — thanks to a window to dry weather. However, four states in particular are substantially behind their five-year average:
State
May 12, 2013
2008-2012 Average
Difference
—-percent—
Illinois
17
64
47
Iowa
15
79
64
Kansas
31
73
42
Minnesota
18
68
50
Two states – Nebraska (43 percent) and Ohio (46 percent) – made the biggest jump in progress this week.
The dry weather is forecast to end later this week, which puts even more pressure on farmers hustling to plant their crops.
"Psychologically, this (week) is a critical one for getting corn planted. Many analysts claim corn seeded after mid-May tends to see lower yields," Karl Setzer, a commodity trading adviser with MaxYield Cooperative in West Bend, Iowa, told Reuters in an article here.
Nationally, 5 percent of corn has emerged, which is also well behind the five-year average of 28 percent.
Soybean planting is also slow-going with 6 percent of the nation’s soybeans in the ground. Most states have reported progress in corn planting, with the exceptional of Illinois. Illinois has yet to show any soybean planting progress, putting it 19 percentage points behind its five-year average.
http://www.cattlenetwork.com/cattle-new … 62531.html
Statistics: Posted by yoda — Mon May 13, 2013 10:40 pm
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Agriculture • Prices for corn and soybeans, five years from now
Prices for corn and soybeans, five years from now
Stu Ellis, FarmGate blog | Updated: 05/10/2013
Although challenges to planting the 2013 crop may provide some degree of support to corn and soybean prices, they have quickly faded from the 2012 highs and are threatening to diminish further from the highs that began in 2007. When corn prices were pumped up from ethanol demand and soybean prices had to bid for acres, a new era of commodity prices was declared by economists. Since we are six years into that era and prices are settling down as predicted, how far down will they settle, anyway?
Iowa State University economists Dermot Hayes and Lisha Li leave little doubt they believe commodity prices are high now, but offer some long term projections which may be valuable for farmers to engage in some long term financial planning. After all, if commodity prices fade further, it may be hard to make the cash rent payment. The economists offer a formula for projecting corn and soybean prices out for five years, using the same type of calculations used by USDA’s Risk Management Agency for establishing revenue guarantees for crop insurance.
Their contention is that economic models designed to predict prices are not as good as the use of commodity futures prices, since traders are using information that helps establish prices. However, the more distant the contract the less the liquidity behind it and the less valuable it becomes as a predictor of prices into the future. Subsequently, the Iowa State economists have projected a six year price trend, based on the futures market, plus an implied volatility factor. But they are quick to qualify the accuracy of their projection, “Of course, any projected price level is subject to enormous uncertainty, and this uncertainty expands as one looks further and further into the future.”
Based on graphs that depict the price trend from their formula, they say corn futures will fall to a level just under $5 by December 2017. And soybean prices are expected to fall to about $11 per bushel by the same time frame. They say, “These prices suggest that futures traders expecting continued demand growth will hold prices at what can be considered historically high levels. However, the projected prices are substantially below current levels, indicating that traders expect world supply to expand to eliminate the current scarcity of corn and soybeans.”
While those would be considered average prices for corn and soybeans five years out from now, there is also the change those might not be achieved, and Hayes and Li offer a “worst case scenario” made up of the bottom 10 percent of potential prices. Any farmer who is creating a valid marketing plan should be aware of the potential for the worst-case-scenario.
Year
Corn
Soybeans
2013
$4.27
$9.69
2014
$3.85
$8.89
2015
$3.41
$7.85
2016
$3.12
$7.09
2017
$2.89
$6.55
The Iowa State economists say, “These extremely low prices levels are unlikely, but they do give one pause.”
Summary:
Based on futures prices and their implied volatility, which are used for setting crop insurance revenue guarantees, it is also possible to project corn and soybean prices several years out. This will help farmers with cash flow projections.
http://www.cattlenetwork.com/cattle-new … 08131.html
Statistics: Posted by yoda — Fri May 10, 2013 9:49 am
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Agriculture • Is the Corn Belt drought over? Not yet
Is the Corn Belt drought over? Not yet
Angela Bowman, Staff Writer | Updated: 05/02/2013
Drought Monitor map released on May 2, 2013.
Spring rains helped some key agricultural states loosen the drought’s stranglehold, but with summer less than two months away, concern lingers.
The latest Drought Monitor report, released on Thursday, shows that 46.9 percent of the nation is in moderate or worse drought. This is slightly improved from last week’s 47.3 percent.
In the Corn Belt, where drought has persisted extensively since last fall, a surge of wetter weather systems have helped alleviate some of the drought’s pressure.
Nebraska, once cloaked with extensive drought, now shows signs of improving. Currently 77 percent is in extreme to exceptional drought, down considerably from 96 percent reported at the beginning of the year.
South Dakota has showed similar reprieve from the drought’s grasp with 21 percent reported in extreme drought, down from 29 percent last week.
Not all states are as lucky. Some – like Oklahoma and Kansas – are states split by drought. In areas were conditions are improving, primarily in the eastern half of both states, the end to the drought could be near. But for those where little relief is seen, conditions only continue to worsen.
In Oklahoma, 31 percent is in extreme drought, with the majority of this intense drought located in western areas of the Sooner State.
Colorado and Texas will soon be dominated the headlines as the drought deepens. Further to the west drought is also becoming a bigger story.
http://www.cattlenetwork.com/cattle-new … 28451.html
Statistics: Posted by yoda — Thu May 02, 2013 1:28 pm
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Burning Books, Burning Witches, Burning Corn
Paul C. "Chip" Knappenberger and Patrick J. Michaels
Global Science Report is a weekly feature from the Center for the Study of Science, where we highlight one or two important new items in the scientific literature or the popular media. For broader and more technical perspectives, consult our monthly “Current Wisdom.”
History is littered with ideology gone awry.
The most recent example? Burning corn as a substitute for fossil fuels in an effort to mitigate anthropogenic climate change (which supposedly has a negative impact on the production of crops such as corn).
This is about as logical as publicity-stunt burnings of Harry Potter books because of objections to the contents within, which only results in more people buying and reading the books to find out what got the book-burners so inflamed in the first place.
With Harry Potter it was the fantasy world of witchcraft and wizardry. With corn ethanol it is the fantasy world of agriculturally damaging climate change.
A few years ago, a paper was published in the prominent scientific journal Science by Stanford’s David Lobell and colleagues that reported that human-caused global warming over the past 30 years resulted in a slowdown in global crop production. Modeling the climate response of the world’s four largest commodity crops—corn, rice, wheat, and soybeans—Lobell’s team calculated that as a result of rising temperatures and precipitation changes, global crop production was about 3 percent less than it otherwise would have been.
But consider this: The United States produces about 36 percent of the world’s corn. And about 40 percent of U.S. corn is used to produce ethanol for use as a gasoline substitute in an attempt to lower net carbon dioxide emissions from driving and reduce climate change. Globally, corn makes up 30 percent of total worldwide production of the four crops studied by Lobell’s group.
Multiply all these percentages out, and you get that the United States is burning a bit more than 4 percent of global crop production in an attempt to mitigate a climate-driven loss of 3 percent of the global crop production.
How crazy is that, you may ask?
About as crazy as burning witches because of climate change and associated crop failures (a popular pastime* during the Little Ice Age).
To make matters worse, the 3% slowdown in crop production (we use “slowdown” because during the 1980–2008 study period the total production of the four crops examined by Lobell et al. increased by about 75 percent, so global crop production is actually booming in the face of climate change), that calculation does not take into account the fertilization effect for crops of the increase in atmospheric carbon dioxide (from our burning of fossil fuels).
When Lobell et al. made a rough estimate of the benefits of additional carbon dioxide, the slowdown dropped to less than 1 percent.
And even this less-than-1 percent impact was described by Lobell et al. as perhaps being “overly pessimistic” because it did not fully incorporate long-term adaptive farming responses to changing climate conditions (i.e., farmers are not as dumb as statistical models make them out to be).
What this means is that even under overly pessimistic scenarios, we still currently burn more than 4 times as much grain as climate change has taken away. Thinking about this in future terms, if we observe twice as much climate change from 2010 through 2038 as we did from 1980 to 2008 (Lobell’s study period), all we would have to do is stop burning half as much ethanol as we do now to make up for the entire global climate-related crop reduction.
The irrational fear that climate change will lead to global crop failures is risible. Burning crops to alleviate that fear will ultimately condemn the perpetrators to permanent laughingstock status, alongside those fanning the flames under witches, warlocks, and other objectionable words.
Reference:
Lobell, D.B., W. Schlenker, and J. Costa-Roberts, 2011: Climate trends and global crop production since 1980. Science, 333, 616-620.
* In a 1999 study published in the journal Climatic Change, Wolfgang Behringer had this to say about what he learned from his investigations into witch hunts and climate change during the Little Ice Age (sage advice to keep in mind!):
Despite attempts of containment, such as the calvinistic doctrine of predestination, extended witch-hunts took place at the various peaks of the Little Ice Age because a part of society held the witches directly responsible for the high frequency of climatic anomalies and the impacts thereof. The enormous tensions created in society as a result of the persecution of witches demonstrate how dangerous it is to discuss climatic change under the aspects of morality.
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Agriculture • Tate & Lyle reveals hit from aflatoxin in US corn
Tate & Lyle reveals hit from aflatoxin in US corn
Shares in Tate & Lyle eased after the sweeteners and starches group hardened a caution over levels of fungal toxin in US corn, and cautioned over lower output of its low-calorie sucralose product.
The London-listed group – which had warned last year over the higher occurrence in US corn of aflatoxin, a residue of the aspergillus fungus – said that the impact of the contaminant "was felt particularly" in the October-to-December period.
"We implemented a number of actions, including adjustments to our corn-sourcing programme," Tate & Lyle said, estimating at £7m the hit to operating profits from aflatoxin.
"We will continue to take action to manage the risks posed by aflatoxin during the first half of next financial year up to the new harvest," the group added.
Jump in aflatoxin levels
While Tate & Lyle uses much of its corn for making ethanol, for blending into gasoline, the presence of aflatoxin nonetheless poses a health threat because of its build-up in biofuel manufacturing byproducts, such as corn gluten meal, used in animal feed.
The group has been forced to sell some of its byproducts at a discount because of the levels of aflatoxins which, besides being carcinogenic, attack the liver after ingestion.
According to the US Grains Council, which promotes US corn exports, "livestock may experience reduced feed efficiency or reproduction, and both humans animals’ immune systems may be suppressed as a result of ingesting aflatoxins".
Levels of the contaminants were enhanced last year by the unusually dry conditions which stressed corn plants, depressing yields, while allowing aspergillus to thrive.
USGC research found that 14.1% of corn samples from the 2012 crop contained aflatoxin levels above those permitted by US food safety regulations, compared with 2.1% the year before.
US laws require the testing of corn exports for aflatoxins, and ban shipments containing more than 20 parts per billion of the toxin "unless other strict conditions are met", according to the USGC.
Sucralose vs HFCS
Tate & Lyle also revealed that growth of its, non-corn based, low-calorie sucralose sweetener "was not as strong as anticipated" three months ago.
"We now expect sucralose volumes for the full year [to the end of March] to be slightly lower than last year," the group said.
However, the annual North American round of pricing for corn-based sweeteners, such as high fructose corn syrup (HFCS) – which are not affected by aflatoxin – had allowed the group to raise prices a little more than needed to cover higher corn costs.
"After recovering these higher input costs, we achieve d a modest increase in corn sweetener unit margins across out sweetener customers reflecting a continuation of high levels of industry capacity utilisation."
Market reaction
While HFCS consumption is in long-term decline in the US, amid a switch to juices and water from fizzy drinks, and some health claims, the rate of shrinkage has been tempered by the return of some groups to using the sweetener.
Furthermore, HFCS demand is rising in Mexico, a major market for US manufacturers.
Tate & Lyle shares fell 4% in early deals in London before recovering some ground to stand at 791p in midday trading, down 2.8% on the day.
http://www.agrimoney.com/news/tate-&-ly … -5468.html
Statistics: Posted by yoda — Fri Feb 01, 2013 9:40 am
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Agriculture • 3 more years of drought for the Corn Belt? Maybe
3 more years of drought for the Corn Belt? Maybe
Angela Bowman, Staff Writer | Updated: 01/31/2013
The drought won’t be going anywhere any time soon, and with the latest Drought Monitor showing no improvement in drought conditions, the nation has quickly entered its 32nd consecutive week with at least half of the Lower 48 in moderate to exceptional drought.
This week, 58 percent of the continental United States is in moderate or worse drought.
The same group of states continues to report the highest percentages of drought: Kansas, Nebraska, South Dakota, Oklahoma and Texas. Georgia also is reporting an overwhelming percentage of exceptional drought.
For Nebraska in particular, January has offered no relief to the state. For the month of January, the majority of the Corn Husker State saw less than one-quarter of an inch of rain. Seventy-seven percent of the state is in still exceptional drought, which continues to remain virtually unchanged since the end of August.
Drought has also expanded to other reaches of the country, including Montana, Wyoming, Colorado, and New Mexico with pockets in Utah, Nevada and Arizona. To the east, drought has seeped into Iowa and Minnesota. See how your state is doing here.
With so little moisture offering relief for most states, some experts are urging producers in select Corn Belt states to prepare for the drought to outstay its welcome even more.
Cathann Kress, Iowa State University’s vice president for Extension & Outreach, told KMALand that Iowa in particular won’t be able to emerge from the drought for three more years if the dry conditions continue as expected.
“Unlike something like a hurricane or the floods that we’re used to in the state of Iowa…a drought is a really different kind of disaster in that I think of it as a super slow motion disaster,” Cathann Kress, Iowa State University’s vice president for Extension & Outreach told KMALand. “It happens over a really long period of time. Other news starts to take the headlines and people start to forget about the drought really quickly.”
Read, “ISU Specialist – ‘Prepare for drought’”
Brian Fuchs, climatologist with the National Drought Mitigation Center, School of Natural Resources, University of Nebraska, is more hopeful than Kress.
At this week’s Ag Connect show, Fuchs noted that with so little relief projected, drought is going to continue for much of of this year. AgProfessional reports that Fuchs suggests that we not lose faith in the possibility of a major change.
“With the weather, I think everyone is smart enough to know that nothing is ever set in stone, as we saw a 100-year flood on the Missouri Basin followed by a historical drought. We have seen both ends of the spectrum,” Fuchs said
http://www.cattlenetwork.com/cattle-new … 09801.html
Statistics: Posted by yoda — Thu Jan 31, 2013 11:36 am
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Agriculture • Corn, wheat prices jump after US cuts supply hopes
Corn, wheat prices jump after US cuts supply hopes
Wheat futures set course for their strongest performance since November, with corn values higher too, after a slew of long-waited US data cut hopes for domestic supplies of both crops.
Wheat futures initially soared nearly 4% in Chicago after the US Department of Agriculture cut its estimate for domestic inventories at the close of 2012-13 by 38m bushels, to 716m bushels, a bigger drop than investors had expected.
And the data cast doubt on ideas of a bumper crop in 2013 too, in dashing forecasts of a jump in US winter wheat seedings.
The USDA pegged winter wheat seedings at 41.8m acres, 867,000 acres fewer than investors had expected.
Corn revisions
For corn, the USDA revealed that domestic inventories at the start of last month were, at 8.03bn bushels, down 17% year on year and some 180m bushels fewer than investors had banked on.
The figure followed growing speculation this week that US livestock feeding with the grain had been stronger than previously appreciated in the latter months of last year, and indeed the USDA raised by 300m bushels its estimate for feed use over 2012-13.
The revision was not reflected fully in the much-watched USDA estimates for US corn inventories at the close of 2012-13, in September, with export hopes slashed following a weak start to the season.
"Corn exports are projected 200m bushels lower, reflecting the slow pace of sales and shipments to date, and increased pressure from larger supplies and exports from South America," the USDA said.
Nonetheless, the estimate for stocks at the close of the season was cut by 45m bushels to 602m bushels – contrasting with market expectations of an increase in the inventory estimate.
‘Strong and volatile prices’
Corn prices also gained more than 3%, with the USDA supporting ideas that the supply squeeze meant no imminent end to the period of elevated prices.
"While stiff competition has limited US corn exports, higher domestic disappearance leaves the balance sheet historically tight and is expected to support continued strong and volatile prices well into summer, particularly in the domestic cash markets," the USDA said.
"Higher expected feed and residual use [of corn] more than offsets reduced prospects for exports."
Chicago corn for March stood 3.2% higher at $7.21 ¼ a bushel, potentially on course for its biggest one-day rise since October.
http://www.agrimoney.com/news/corn-whea … -5396.html
Statistics: Posted by yoda — Fri Jan 11, 2013 1:54 pm
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Agriculture • Brazil: Now Second Largest Exporter of Corn
Brazil: Now Second Largest Exporter of Corn
06 January 2013
South America – Brazil has bumped Argentina out as the world’s second largest exporter of corn, in a year in which Argentine harvests declined, according to a report by consultancy Informa Economics FNP.
Brazil had a record production of corn last year and exported a record high of almost 20 million tonnes, double the foreign sales of 2011, thanks to strong international demand following the US drought, reported America Economia.
"Argentina has not yet completed the shipment data of maize in the country, but according to the programming lineup (of ships) accounted for through December, exports should total 16.7 million tonnes," said the Brazilian division of Informa Economics.
The consultancy noted that the decline in maize production in the United States, the main global exporter, and low inventories in Argentina, created a vacuum in the external market benefiting Brazil. FNP also emphasized that "the increase in the exchange rate also helped competitiveness of the product originating in Brazil."
http://www.thecropsite.com/news/12764/b … er-of-corn
Statistics: Posted by yoda — Sun Jan 06, 2013 1:39 pm
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Agriculture • Farmers Grew Less Corn In 2012 Than Expected
Farmers Grew Less Corn In 2012 Than Expected
04 January 2013
US – After three disappointing corn crops in a row, good yields in 2013 will be essential to rebuilding inventories, according to the latest Farm Futures magazine survey.
The extent of that effort takes shape in coming weeks, beginning with USDA’s January 11 estimates of 2012 production. The Farm Futures survey showed growers raised 10.62 billion bushels of corn on harvested acreage of 87.5 million and nationwide yields of 121.3 bpa. USDA’s November estimate put the crop at 10.725 billion bushels.
Results of the survey were released today at the opening day of the annual Farm Futures Business Summit in St. Louis, attended by more than 400 producers.
"Based on our survey of more than 1,550 growers and the government’s own certified acreage data from the Farm Service Agency, it appears production should be lower than previous estimates, said Senior Editor Bryce Knorr, who conducted the research.
"This makes good yields and large acreage crucial in 2013 to provide the corn needed by end users in the US and around the world."
Attractive profit margins should convince growers to increase plantings this spring. Producers told Farm Futures they intend to boost corn seedings to 97.75 million in 2013, a little less than one per cent more than in 2012.
"While the planting intentions we found were not as big as some predict, it was a substantial increase from our first survey in August, which projected 93 million acres," said Farm Futures Market Analyst Paul Burgener.
"The reality of another year with outstanding returns for corn convinced many growers to try more corn on corn, despite their long-term desire to return to more balanced rotations with soybeans."
As a result, the latest survey finds farmers plan to put in 76.84 million acres of soybeans. That would be a little less than the 77.2 million USDA last estimated for 2012, though more than the 76.1 million farmers responding to the survey said they put in last spring. Farm Futures estimate of 2012 production is 2.969 billion, only a few thousand bushels lower than USDA’s November projection.
"In August, our survey showed farmers ready to splurge on soybeans, increasing 2013 plantings to 78 million acres," said Knorr.
"But soybeans were trading well over $16 a bushel at the time. With new crop prices substantially lower, farmers are again focusing on total returns, giving corn the edge."
USDA issues its first survey-based forecast of 2013 spring crop planting intentions at the end of March, with a preliminary estimate put out in February at its annual outlook forum. The agency will release a survey-based estimate of winter wheat seedings January 11. Farm Futures found growers planted 42.1 million acres of winter wheat in the fall, up 1.8 per cent, with total wheat seedings for 2013 put at 57.16 million, up 2.5 per cent.
Burgener noted the latest winter wheat estimate was down 1 million from the magazine’s August survey. "While soft red winter wheat plans were unchanged, dry conditions on the Plains caused hard red winter wheat growers to cut seedings by 800,000 acres from initial intentions," Burgener said. "Those fields could wind up in corn, milo, cotton, millet, sunflowers, or soybeans depending on winter and spring moisture, another wild card the market must consider."
Farm Futures surveyed more than 1,550 growers about their plans from November 23 to December 12.
Survey results by crop:
http://www.thecropsite.com/news/12756/f … n-expected
Statistics: Posted by yoda — Fri Jan 04, 2013 12:00 pm
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Agriculture • Weather woes hit hopes for huge SA corn, soy crops
Weather woes hit hopes for huge SA corn, soy crops
Hopes for big South American crops buyers are relying on to fill supply gaps left by drought-hit US harvests took a knock with the first talk that a difficult sowing season had curtailed yield harvest.
The run of upgrades to Brazil’s soybean crop went into reverse as Michael Cordonnier, the respected crop scout, trimmed his forecast to 80m tonnes, from 81m-83m tonnes, albeit still a record high.
He warned that a downgrade was on the way to his forecast for Argentine corn too, following persistent rains which have left "fields two-feet deep in water as far as the eye can see".
And, separately, Oil World cautioned that "there is now a higher risk that initial estimates of a sharp increase in [South American] soybean production… will not fully materialise".
The analysis group has pegged the continent’s 2012-13 soybean output at 153.5m tonnes, a rise of 36m tonnes year on year.
‘Very troublesome’
The downgrades follow a further period of weather extremes, following last season’s drought, which has landed much of Argentina and southern Brazil with excessive rain, while leaving many central and northern parts of Brazil with too little moisture.
"Excessive rainfall has reportedly been received on roughly 50% of the total Argentine oilseed and grain area," Oil World said.
Dr Cordonnier, noting that Argentine corn sowings were 38% complete, some 20 points behind last year, said that "planting is very troublesome", adding that the slow rate of seedins was "becoming a big issue".
"Argentina is not going to get a lot of corn planted any time soon,"
While this could boost production of soybeans, as farmers switch to a crop which can be later planted, it was not clear that farmers "will not have problems planting soybeans as well", he told Agrimoney.com.
‘Very hot and very dry’
In Brazil, soybean sowings were also running behind, by as much as 20 points in Goias, where weather has been "very hot and very dry", with temperatures reaching 103 degrees Fahrenheit, Dr Cordonnier, at Soybean and Corn Advisor, said.
Oil World said that Brazil’s soybean sowings were lagging by 1.3m-1.5m hectares, as of October 19, adding that it was likely that "in the first or second week of November there will be headlines circulating in newswires about alarming soybean planting delays of around 3m hectares behind last year’s pace in Argentina and Brazil combined".
The problem for the central and northerly regions was that in some areas, such as the western part of top soybean-growing state Mato Grosso, the first rains arrived on schedule last month, prompting farmers to make a start on sowings.
"But they never got the second rains" needed to support the crop, Dr Cordonnier said.
Germination rates were, at 25-35%, poor, meaning many farmers were "waiting for rain, and will then replant".
‘Spotty start’
Rains are in fact forecast for the next two days, which could have a significant influence.
"it’s time to get the stuff in the ground. It has been a spotty start to the growing season."
http://www.agrimoney.com/news/weather-w … -5158.html
Statistics: Posted by yoda — Tue Oct 30, 2012 9:49 am
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