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As of
this writing, August 18, 2005, corn harvest is just getting started
across Alabama, though by the time of printing we should be at least
halfway complete. Though acres are down statewide, we expect good yields
and quality. Our early reports so far indicate just that, but let us all
pray for good weather to help our corn, cotton, soybean and other crops
for this season as well as the future.
For the
benefit of the state’s producers, we wish that current futures prices
were higher on the Chicago Board of Trade (CBOT), but though weather was
dry early in the season in the corn belt, a large carry-over of grain
stocks due to lack of export demand and an anticipated corn crop of over
ten billion bushels nationally have pressured lower cash prices.
I believe
a future column should explain what we call "basis," the
explanation of why delivered cash prices do not always equal the CBOT
quoted price on a particular month’s option.
A summary
of the early harvest on the corn crop looks good, though as mentioned
before at press time we will have a clearer picture.
South
Alabama: Though acres are down approximately 50%, reports are of 115
bushels per acre dry land, 190 irrigated, with 20% moisture.
Central
Alabama: Not yet started, though expected dry land grain of 95
bushels per acre corn and 40 bushels per acre soybeans. The limited
quantities delivered thus far have also run about 20% moisture.
North
Alabama: Surprisingly, north Alabama has had some corn already
delivered and reports of early soybeans ready for harvest, probably due
to somewhat less moisture during the spring when the rest of the state
had excess moisture and a difficult time with their planting.
Unfortunately this year there is no premium for early beans. Dry land
August corn has thus far shown excellent yields, from 125-150 bushels
per acre with a relatively low moisture level of 16-19%.
Unfortunately,
no commodity report in the southeast can exclude the potential soybean
rust crisis. Though most of the reports of rust infected leaves have
been on kudzu plants, not soybeans, this disease spreads quickly and is
a great threat to the soybean crop. To date, there have been 18 counties
with confirmed rust in Florida, 4 in Alabama and 3 in Georgia. Please
consult your Cooperative Farming News or local Co-op store for further
updates on this developing situation. |
