The Grain Hedge Team provides a macro-focused daily view of the world’s grain markets. Kevin McNew received a bachelor’s degree from Oklahoma State University and his master’s and Ph.D. degrees in Economics from North Carolina State University. He spent 10 years as a Professor of Economics with the University of Maryland and Montana State University focusing on commodity markets and is widely regarded for his ability to boil-down complex economic situations into easy-to-understand concepts for applied life.
Big Gains In Planting Progress
May 13, 2014
U.S export inspections were released during the trade session yesterday showing that corn, soybeans and wheat all outperformed analyst expectations. For wheat, 623,157 MT was inspected for export which beat the high side of analyst expectations by 48 thousand MT. Corn inspections came in on the high side of analyst expectations with 1,199,447 MT and soybeans beat expectations with a reported 239,955 MT inspected for export.
The weather outlook seems to favor planting in the western Midwest for the next week following the recent round of precipitation. The eastern Midwest is forecast to receive more moisture over the next three days, but following that, a 4-5 day period of dryness should open a window of opportunity for eastern producer. In winter wheat country it looks as if the 6-10 day forecast shows a drier outlook with the next chance of moisture over a week away. The dryness in the plains should continue to support the wheat market which has faced a recent pullback in prices.
Monday’s crop progress numbers showed that last week was a busy one for U.S. farmers, with corn planting now 59% complete across the U.S. This was a 30% improvement from the previous week and puts this year’s planting pace 1% ahead of the 5 year average. Iowa saw an astonishing 47% of the crop (6.6 million acres) planted last week alone. This report should ease most market concerns about getting the 2014 corn crop planted in a timely manner.
Soybean planting pace was up 15% on the week, now 20% complete across the country. This puts planting pace 1% behind the five year average. Northern states are still lagging in terms of pace; Michigan 10% planted, Minnesota 4% planted, North Dakota 0%. From talking with farmers across Minnesota and North Dakota cold weather and rain have both hampered planting efforts this week.