Thursday, July 05, 2007

Local Corn Looks Awesome

In my immediate vicinity the corn crop looks absolutely awesome. We have had very timely rains and some ideal temperatures as of late that have made the corn grow at an incredible rate. I can't remember a time when this much corn with tassles and ears forming looked so good at July 4th. Wasn't the old saying "knee high by the 4th of July"?

Iowa appears to have good corn crop also:

Iowa's corn growers are on their way to harvesting the biggest acreage
ever, according to the June 29 USDA Planted Acreage Report. The survey shows
14.3 million acres of corn planted in Iowa in 2007, a 13.5% increase from last
year and 3.2% higher than the March USDA Planting Intentions estimate. Iowa
farmers in 2007 have just missed eclipsing the state's all-time record of 14.4
million acres planted to corn, which was set in 1981. Assuming a state average
yield of 176 bushels per acre, the 14.3 million acres of corn planted could mean
a bin-busting Iowa crop of almost 2.5 billion bushels this fall. Nationwide, the
corn crop could top 12.8 billion bushels. Iowa's largest crop ever was 2.2
billion bushels, harvested from 12.4 million acres in 2004.

This on top of the largest corn acreage planting in 60 years:

U.S. farmers planted 92.9 million acres of corn in 2007, exceeding last
year’s planted area by 19 percent and surpassing the March projection by 3
percent, according to the Acreage report released today by the U.S. Department
of Agriculture’s National Agricultural Statistics Service (NASS). The actual
planted acreage is the highest since 1944, when farmers planted 95.5 million
corn acres.

Driven by favorable prices, growing ethanol demand and
strong export sales, farmers in nearly all states increased their corn acreage.
They set state records in Illinois, Indiana, Minnesota and North Dakota, while
Iowa continued to lead all states in total corn acres.

Corn prices are lower, but still well ahead of historical averages:

December corn traded 5 3/4 cents lower in the overnight session. Deliveries
for the July contract this morning came in at 1,369 contracts. Ideas that timely
rains and less heat in the extended forecast models could keep corn crop
conditions favorable into the heart of the pollination period helped spark the
sell-off on Tuesday. With a little less rain than expected for the eastern Corn
Belt yesterday and with some intense heat for a few days in the western Corn
Belt, the market found some overnight support. There are some growing concerns
for pollination in Minnesota if there is not another good rain event soon. Good
rains in the past week appear to have saved the crop in many of the drier areas
of China, but the trade is a little skeptical to believe that exports will pick
up anytime soon. China's pork prices kept rising in June, and it will be some
time before production of pork can quickly expand. Keep in mind that with the
high pork prices and high corn values in China, it seems to be in their best
interest economically if corn prices were to slip. There has been plenty of
press recently from China that the crop could be near a record high at 150
million tonnes and that the government is putting the brakes on new ethanol
plant construction.

1 comment:

Nathan Schock said...

I just drove through Iowa to Des Moines this past weekend and the corn looked really good there as well. I hardly saw a field without at least some tassles.