Crop Progress Shows Active Harvest
- Corn crop conditions improved to 62% good to excellent from 61% last week, and remain above 56% last year.
- Corn harvest was 25% complete, up from 15% last week, and just ahead of the 24% average.
- The crop rating for soybeans remained unchanged from last week at 64% good to excellent compared to 53% last year.
- Bean harvest was ahead of expectations at 38% complete, advancing from 20% last week, and was ahead of the 28% average.
- Winter wheat planting was 52% complete versus 35% last week, and 48% average.
- 24% of winter wheat has emerged, up from 10% last week, and slightly ahead of the 21% average.
- Upland cotton crop conditions slipped to 40% good to excellent from 43% last week.
FBN’s Take On What It Means: Dry conditions in the western Corn Belt and Northern Plains have led to a very fast harvest in the region. Good advances were also seen in the central Midwest despite some shower activity. The Delta and parts of the Midsouth have had to contend with the remnants of storms which have slowed harvest, and another storm is expected into the weekend. Strong progress should continue across most of the Midwest considering a mostly dry forecast for this coming week.
EU Corn Imports Expected Higher
- The European Commission's official forecast is for 2020/21 corn imports to increase to 19 million tonnes from 18.4 million last year.
- However, the report stated imports could rise further to 20 million tonnes due to drought in the eastern part of the bloc, especially in Romania.
- In September, the Commission lowered its corn production forecast to 63 million tonnes from 70 million previously.
- The projection is 10% below last year's production and almost 4% lower than the 5-year average.
- Ukraine grain exports are down nearly 15% this marketing year, and have shipped just 678,000 tonnes of corn.
FBN’s Take On What It Means: The challenging growing season across Europe this year is taking a toll. The increased needs of the EU might normally be expected to be filled by Ukraine, but that may not be the case this year as its corn production has also suffered. USDA will be making changes to its world balance sheet this Friday and may need to adjust demand higher.
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