What is in this article?:
- Will corn prices pull in late-planted acres?
- No change in projected use
• One thing is clear; it will not be a season where the corn crop goes in early.
• However, it was wet in April in both 2008 and 2009, and we got the corn crop in, matching March intentions.
• However, we have 6 million more acres to get planted in 2011 than in 2008 and 2009.
Will we get 92 million acres of corn planted? Maybe, maybe not, maybe more.
One thing is clear; it will not be a season where the corn crop goes in early. However, it was wet in April in both 2008 and 2009, and we got the corn crop in, matching March intentions. However, we have 6 million more acres to get planted in 2011 than in 2008 and 2009.
U.S. farmers have planted as much as 40 percent of the corn crop in one week, and often plant over 30 percent. Can that happen again, sure, could it not, sure?
While later plantings do not mean poor yields, as shown by 2008 and 2009, it does lower the odds of good yields. While as of this writing I would still expect the 92 million acres of corn will be planted. One thing is assured; the price volatility will remain as the weather market gets in full swing.
We need to discuss a couple of questions. Are old crop prices high enough to ration demand? And are new crop prices high enough to assure the acres will get planted the later the planting season gets?
The USDA incorporated the March mid-year corn stocks report into their April 8 Supply/Demand updates for 2010-11. As you may remember, corn disappearance the first half of the year was higher than expected. The USDA lowered projected feed use by 50 million bushels, despite the higher feed disappearance than expected and raised projected corn used for ethanol by a like amount.