(Agrimoney) – US corn and soybean harvesting progressed quicker than investors expected last week – so fast that Corn Belt elevators are running out of space, although the strong pace allowed some catch-up on wheat plantings.
US growers gathered in 13% of their soybeans in the week to Sunday, more than the 11% that analysts had forecast, and taking the harvest to 83% completion, bang in line with the average pace.
For corn, farmers got 19% of their crop in the barn, five points more than expected and one of the strongest levels of progress for any week in the past 20 years – equivalent to approaching 16m acres, an area 1.5 times as big as Switzerland.
Only in two weeks on records going back to 1995 have US farmers harvested a bigger proportion of their corn crop.
Even so, at 65% complete, farmers remain eight points behind the pace in terms of the proportion of crop typically harvested by this time of year, with the lag a result of a late spring sowing season and a cool summer, which delayed development, plus wet autumn conditions too.
‘Running short on storage space’
In Minnesota, growers harvested 30% of their corn during the week, nearly catching up with the average pace, with US Department of Agriculture scouts citing “favourable weather conditions”.
Even so, “moisture levels in late planted fields remained an issue for some producers during harvest last week”, USDA scouts said.
Further south in the Corn Belt, the extent of the harvest progress tested storage space, including in Iowa, the top corn-producing state, where farmers harvested one-quarter of their crop during the week.
“Although off-farm grain storage availability was rated 89% adequate to surplus, a few elevators were running short on storage space or limiting incoming grain,” USDA scouts said
In Indiana, where growers harvested 14% of their corn and 23% of their soybeans, the extent of the rush – at a time when the US rail network is struggling to cope with freight demand – “the late harvest rush is quickly filling up the elevators, leading to delays for several farmers.
“Some elevators were unable to take corn or soybeans.”
The prospect of storage running out has raised some concerns of pressure on prices, with Richard Feltes at broker RJ O’Brien noting market ideas that the “final harvest push will push spillover bushels into the pipeline”.
‘There is some concern’
The pace of the harvest last week also allowed Corn Belt farmers to catch up on sowings of winter wheat, often planted on land vacated by corn or soybeans, but which have been delayed by the slow pace of this land coming free.
In Missouri and Ohio, growers planted 18% of their winter wheat, and in Illinois 28%.
Even so growers in the Corn Belt remain a little behind the average pace in wheat plantings, in contrast with better progress in the southern hard red winter wheat states, and in the north western white wheat areas.
In Indiana, “there is some concern that the delayed harvest may prevent some farmers from getting wheat planted before winter arrives,” the USDA scouts said.
The data also revealed some deterioration in condition of the winter wheat crop in the wet Corn Belt states, with the proportion of Illinois wheat rated “good” or “excellent” easing 5 points, albeit to a still-strong 64%, and in Missouri by 4 points to 58%.
The overall US winter wheat crop rating remained stable at 59%, again presenting some disappointment.
“The trade was looking for winter wheat condition to improve to 60%,” said Terry Reilly at Chicago broker Futures International.
