USDA’s Crop Progress Report: US Corn and Soybean Harvest Still Behind
The USDA’s latest Crop Progress report released on Monday, Oct. 21 showed another week of slow harvest pace for corn and soybeans.
Corn harvest is reported at 30% complete vs. the 5 year average of 47%.
All major corn producing states in the eastern and western corn belts including: Indiana, Illinois, Iowa, Minnesota, South Dakota and Nebraska are behind the historical averages.
The USDA reported that 46% of the crop is harvested and is behind the 5 year average of 64%.
Similar to corn, the primary soy producing states including: Indiana, Illinois, Iowa, Minnesota, South Dakota and Nebraska are behind the historical averages.
FBN’s Take On What It Means: We believe that current harvest pace for corn and soybeans is a top concern, particularly in states that have been impacted by early winter storms. At FBN, we believe that the harvest delays can be supportive both local basis and futures prices. Please contact your local FBN farm market advisor (FMA) for more information.
Dryness in Brazil Continues To Slow Soybean Plantings
Brazilian agri-consultant, AgRural, reports that the planting pace of Brazil's 2019/20 soybean crop has progressed to 21% which is below last year's 34% as dryness has slowed field work.
The estimated 21% is in line with a five-year average and is supported by the planting pace in Mato Grosso.
Planting pace in Paraná state is at 33% and is the slowest pace since the 2011/12 crop.
The dryness in Parana also has the ability to impact the second corn crop.
Replanting of soybeans is also a possibility in the states of São Paulo and Mato Grosso do Sul, though in areas smaller than in Paraná.
Brazil is the world's largest exporter of soybeans.
FBN’s Take On What It Means: We believe the dryness in Brazil has become a concern for the country’s corn and soybean crops. Brazil suffered a drought in 18/19 which impacted the soybean crop and lowered production. We believe that another sub-120 MMT Brazilian soybean crop combined with a shrinking U.S. soybean crop can be supportive of US futures prices.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
