On Monday afternoon, the USDA released the Crop Progress report. As of Sunday evening, May 22, the USDA estimated that the US corn crop was 86% planted vs. the 75% planted as of last week. We are still a touch behind last year’s pace at this time with 90% planted and a shade higher than the 85% average. The eastern Corn Belt is still behind schedule for corn planting, especially in Illinois, Indiana, and Ohio. Missouri and Kansas are a couple of states who are very much ahead of normal pace. It’s estimated that there are approximately 13 million more acres of corn to be planted to reach USDA’s forecast. Corn emergence is 5% ahead of average across the US. Next week we will get our first glance at the corn crop conditions.
Soybean planted acres took a jump this week to 56% planted vs. just 36% last week. Our soybean planted acres are just ahead of the average for this time of year. Soybean emergence is right on pace compared to the average. There are still plenty of acres of beans yet to be planted, especially across Illinois, Indiana, Ohio, Kansas, and Missouri.
A couple of weeks ago Kelby talked about the bean/corn ratio. Today the ratio sits just around 2.56:1 vs. 2.69:1 on May 11. Take a look at the charts below to see how the markets have changed in the meantime. The “circled” area represents the time frame around May 11. Today’s values are at the end of the chart. This chart represents that corn has taken an opportunity to move a little higher and beans lower in order to get the ratio back towards 2.5:1. December 2016 corn in on the left and November 2016 beans are on the right.
So, what does all of this even mean? Though we are nearing the end of planting, the forecast across the eastern and western Corn Belt still looks favorable. We will have some “final” numbers on June 30th that represent the actual acres planted for both corn and beans. Besides weather, this will be our next big event moving forward. It’s crucial to have offers working in case the market decides to get wild over the next couple of months. Contact your ProEdge Grain Specialist or Risk Management Consultant today to talk about current target levels.