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It has certainly been an interesting planting season in Alabama this spring. Across the state increased nitrogen prices along with heavy rains delayed corn plantings in late March and April, reducing acres in the south up to 40% and in the north up to 20%. Then we were subjected to a hot and dry May.
Well, after several weeks of dry weather across the Southeast, we finally received the much-needed rains on our soil. In many areas, most notably in north Alabama, there was fear among the producers that without moisture the corn crop would be in jeopardy. Now our reports tell us that for now we are out of danger, though the late planting season and unseasonable weather indicates that yields will potentially be down 20 bushels per acre from 2004 and the corn harvest will be later than usual with cutting beginning in September instead of August.
Reports on soybeans and cotton are very favorable and current growing conditions are good. In the south, peanuts have taken up the majority of the corn acre depletion, which is good news for the volume at our Anderson’s Peanut Division.
Futures prices have continued to creep upward due to dry weather in the Midwest. Current September corn values are in the $2.30 per bushel range and November beans hovering around $6.90. We have many open orders on corn around $2.50 and beans around $7.50 with hopes that we will fill these to get the best prices for our customers. Springtime weather markets are very volatile, however, and must be monitored closely everyday.
Though the rains are very beneficial to the summertime crops, too much precipitation in
July can have an adverse effect on the wheat crop. Reports out of south Georgia already have serious concerns on the possibility of sprout damage. With acres of wheat already down from last year, this proposes a challenge if the wheat will not pass at the flour mills. Producers may have to seek other avenues for their wheat as a feed product. |
