Mostly dry weather in the Great Plains and Corn Belt over the past week promoted crop harvest. With the exception of the Pacific Northwest, areas of the Great Basin, and southern Florida, temperatures were above average for most of the country during the period.
A second consecutive week of above average temperatures and mostly dry weather in the major corn-producing regions of the country allowed the corn harvest to progress rapidly during the week. Despite the active harvest pace, progress only reached 54 percent complete, 23 points behind last year and 35 points, or over 3 weeks, behind the 5-year average.
Producers in Illinois, Indiana, Iowa, Minnesota, and Ohio utilized over 5 days suitable for fieldwork to harvest 20 percent or more of their crop. As harvest surpassed the halfway point during the week, 67 percent of the corn crop was reported in good to excellent condition, down slightly from last week.
Other areas are in worse shape due to continuing rain and unfavorable harvest conditions. “We’re going to be running the corn harvest well into December with the rains we’re receiving this week,” says Bill Nelson, Doane economist. “Consequences may include the corn sitting in the field until spring in areas such as North Dakota, where harvest is so far behind.”
Corn futures are trading lower on Tuesday. Strength in the dollar, lower crude oil and gold futures, and weakness in the stock market are pressuring corn prices. Losses are being limited by the harvest delaying rain in the Corn Belt this week.
Producers harvested 14 percent of the soybean crop during the week, leaving progress, at 89 percent, 6 points behind last year and 7 points, or 12 days, behind the 5-year average.
“We’ve seen some gains in soybean meal prices over the past week,” says Nelson. He points to outside market influences having an impact in driving soybean prices. “Worries about the economy, inflation concerns and unemployment all are building in a bullish view for the soybean complex. Our inclination would be to not chase the soybean meal market at this point.”
Harvest was active throughout most of the majoring growing regions, but progress remained behind the average pace in all states except North Carolina and Ohio.
Source USDA, Doane