Slides below are from today’s www.morningcall.saxo which is live daily at 6:45 GMT (CET +2, ET -4).
Adverse weather and flooding in the Midwest and Plains have not only delayed planting of corn and soybeans but also raised concerns that flooding may damage the quality of the wheat crop already in the ground.
Today the price of corn reached a fresh three-year high following the release of the weekly planting progress report, currently most-watched set of data from the USDA. The latest report covering the week to May 26 found that the record slow historic planting pace continued last week with just 58% planted compared with 90% for the same time last year. US farmers across the corn belt have not been able to enter their flooded fields and with the clock ticking down to the time when planting no longer makes sense has almost arrived. This partly explains the continued rally today with the total gain on the new crop December contract having reached 25% during the past two weeks.
Later planted soybeans could be the obvious choice for farmers running out of time to plant corn but with fields flooded the planting progress at 30% remains well below the +70% average seen the past five years. According to Reuters the total acreage of corn and soybeans left to plant has reached 99 million acres or the size of Germany.