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RSSCorn Planting Far Ahead of 5-Year Average
USDA released its weekly crop progress report on April 26 that showed that planting of the 2010 corn crop was at 50%. This is well ahead of last year’s crop (20%) and the average pace over the last 5 years (22%).
USDA also reported that 69% of the winter wheat crop is in "good" or "excellent" condition vs. 45% at the same time last year. Corn, soybean and spring wheat crop conditions will not likely be published until later in the growing season.
Henry Kirn, machinery analyst for UBS Investment Research, says he continues to expect a “flattish” demand for U.S. farm equipment in 2010.
“Although down from the prior year, we note that corn, soybean and wheat prices remain well above historical averages, and farmers are expected to remain profitable in 2010,” Kirn says. “USDA forecasts cash net income to increase 8% YoY in 2010. That said, given above trendline farm equipment sales over the past few years, we expect flattish U.S. farm equipment demand in 2010.”
