South US farms mull switch to soy, as rain hits corn sowings

April 14th, 2015

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Category: Grains, Oilseeds

SoybeanCorn450x299Low50(Agrimoney) – Rains slowed the start to US corn plantings by more than most investors had expected, but the market remained sanguine about prospects, despite talk of southern farmers switching to later-sown crops.

US farmers had sown 2% of their corn as of Sunday, down from the average of 5% by then, and a figure at the bottom end of market expectations, US Department of Agriculture data showed.

The shortfall reflected in the main rains in southern and some eastern areas which prevented farmers getting into fields, with Tennessee sowings only 5% completed, compared with an average of 23% by now.

“Producers have been severely restricted from planting corn due to wet weather,” USDA scouts in Tennessee said.

In Kentucky, where just 1% of corn was sown, compared with an average of 15%, “wet conditions continue to prevent most field work as corn planting is two weeks behind normal in many locations”, USDA scouts said.

And in Ohio, scouts said that “extremely wet field conditions are delaying fieldwork”, although with the planting window only just opening, data have yet to illustrate the real extent of delays.

‘Fields have ponded’

Sowings were behind in the main Corn Belt “I” states to – yet to start in Illinois, Indiana and Iowa, compared with typical progress of 9%, 4% and 1% by now.

USDA scouts in Iowa said that “wet conditions continued to slow fieldwork” last week, while in Indiana, they said that “increased rainfall throughout the state pushed back prospects of corn and soybean planting until the rain subsides and fields dry out.

“Many fields have ponded from increased rainfall making fieldwork difficult,” the Indiana scouts said.

‘Planting to progress quite well’

However, investors remained sanguine over the setbacks, with corn futures for July easing 0.25 cents to $3.77 ¾ a bushel in early deals in Chicago, amid ideas of some dryness ahead for much of the Midwest.

This week, “more limited rains will allow planting progress to improve a bit,” MDA said.

And from the weekend into next week, “limited rains in the central and western Midwest will allow corn and soybean planting to progress quite well”.

‘Losing some corn acres’

The improvements offset expectations of continued wetness in south eastern and Mississippi Delta states which are expected to keep growers on the back foot.

“Ongoing wet conditions in the Delta will maintain slow planting there,” MDA said.

The extent of setbacks at a time when the sowing window in the area is seen as closing, for corn, is provoking talk of farmers switching to other crops, such as soybeans, which can be later seeded.

“The Delta remains wet through the forecast and now is assumed to be losing some corn acres,” said Brian Henry at broker Benson Quinn Commodities.

Mike Zuzolo, president at Global Commodity Analytics. Said: “After speaking with several contacts, I am starting to pick-up a more significant commitment of a move away from planting corn south of the Ohio River Valley if those acres aren’t already planted.”

In Louisiana, while it looks like about 80% of corn “got planted on time”, contacts suggest “10% not getting in the ground – and this doesn’t included any flooding/drowned-out corn from what may come in terms of precipitation this week yet”.

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