Wisconsin corn planting progress way ahead of last year!

According to the latest USDA Wisconsin Crop Progress & Condition report, we are at 85% planted vs. the five year average of 53%.  Last year we were only at 34% planted at this time of year.  To see the full crop progress report, please click on the following link.  

Wisconsin Crop Progress & Condition report 5-18-15

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A USDA Plantings and Stocks Report Quick Hitter

The USDA released their plantings and stocks report this morning. Corn stocks are below average trade guess. Bean stocks are also below guesses. Acres are higher for corn. What? Really? Maybe they did this just to tell us they will resurvey. Also, these numbers are from June 1st. You and I both know things have changed since then. Bean acres are higher also. This I can believe.

Producers should be aware of the inverse that is hitting the corn and bean markets. This simply means that the market is not paying you to store your crop. So if you’re still holding old crop bushels, it is certainly time to think about moving some. Here at Allied Cooperative, we are keeping our inventories low so we don’t have to carry bushels into the future where the price is eroding. Feel free to call me if you need help sorting it out.

– Rich Dahlke, Grain Merchandiser

Surprisingly Bearish USDA Report

We here at Allied Cooperative are excited to welcome our Grain Division to Breaking Ground, and we look forward to hearing more from our grain experts in the future!

The biggest surprise in the USDA supply/demand revisions report (World Agricultural Supply Demand Estimate) that came out Wednesday was the lack of revision – especially in corn acreage. There were no changes to the planted acres. I’m sure you and I both think they should have cut planted acreage. However, the last three times the USDA cut the planted acres in the June report, they were forced to make upward revisions several weeks after. This may be what convinced them to just leave it alone despite the obvious and historically slow planting pace this spring.

The net impact of the report was a slight reduction of 2013/2014 ending stocks of 55 million bu to 1.949 billion bu. That’s how many bushels no one wants and that’s still a large number. It’s the biggest since 2005/2006. We may not like to hear it, but if improving crop conditions are seen, new crop prices could still work lower. December $5.50 futures should be seen as a selling opportunity. Let’s put our focus on the weather and the acreage report which will be out in several weeks to see how much the USDA cuts corn acreage. Remember, it will take a significant reduction in acres to bring down this burdensome carry out – especially if crop conditions improve.

– Rich Dahlke, Grain Merchandiser