The Corn Conundrum | Reuters.com
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Traditionally, the last week of April and the first week of May are the biggest corn planting weeks in the Midwest. Not this year. Planters have been scarce and basic prep like discing or fertilizer application also are weeks behind.
So far, U.S. farmers are off to their slowest start since 1999. The U.S. Department of Agriculture will issue its next crop progress on Monday afternoon. One would have to guess that depending on how much corn is planted – it will drive CBOT prices Monday night and Tuesday. Preliminary guesses is for USDA to report 25-30 percent of the crop seeded, versus the seasonal average of 63 percent.
Granted U.S. farmers can plant corn quickly given today’s 24-row planters. But it’s got to stop raining and warm up.
“There is no sign of a major change in the pattern which means no wide window for planting for the next week to 10 days,” said Mike Palmerino, forecaster with DTN Meteorlogix.
“There will be occasional planting when there’s a break in the rains … the stronger sun will work to their advantage.”
Beijing frets as China farmers look away from corn | Special Coverage | Reuters
CNGOIC sees China’s corn consumption rising 2.2 percent to 148.7 million tonnes in the year starting in October — dangerously close to an expected output of 149 million tonnes — with feed demand up by 1.4 million tonnes at 96.9 million tonnes.
Some analysts predict China will emerge a net importer of corn in the next few years, especially if weather wrecks the 2008 crop, though current domestic prices are about a quarter below the costs of imports from the United States.
Beijing frets as China farmers look away from corn | Special Coverage | Reuters