Crop Market Update: May 6, 2014

Planting progress remains behind schedule this year, but we are still well ahead of last year’s pace nationally. U.S. producers currently have 29% of the U.S. crop currently planted compared to a 5-year average of 42%. Emergence of the U.S. corn crop is also behind average with 7% emerged this year compared to a 5-year average of 13%. Mississippi is nearing completion of corn planting but is still behind normal with 88% planted compared to an average of 96%. 70% of Mississippi’s corn crop has emerged, behind the 5-year average of 90%. Traders will be watching Friday’s USDA supply and demand report closely, as it will be the first report to include estimates for the 2014-15 crop year. Early trade expectations have old-crop ending stocks being revised down slightly, while new crop ending stocks will likely be larger than this year’s crop.

Soybean planting is slowly progressing in Mississippi with 36% of the crop planted this week compared to a 5-year average of 50%. U.S. producers have 5% of the soybean crop planted, with much of that progress found in Southern States, and many of the Corn Belt states just beginning. Soybean planting progress is behind the 5-year average of 11%. Strong soybean exports along with extremely tight supplies have kept soybean markets bullish, despite expectations of a large harvest this fall. Soybean prices have been coming down since the middle of last week, but old-crop ending stocks are expected to be reduced from already low numbers in the USDA’s supply and demand reports due to come out this Friday.

Wheat prices are continuing to rally as the condition of the U.S. winter wheat crop continues to look bleak. Only 31% of the crop is rated good or excellent, down 2% from last week. Wheat is maturing more slowly than normal with 29% of the U.S. wheat crop has headed out compared to a 5-year average of 35%. Mississippi’s wheat crop is also maturing much slower than normal with 72% of the crop headed out compared to a 5-year average of 91%, but the crop is faring much better than the U.S. crop with 70% of Mississippi’s wheat rated good or excellent.

For more detail on crop futures and Mississippi local cash prices click here. Detailed information on crop progress can be found here.