While planting of 2010 corn as of April 12 stood at only 3%, that slightly better than last year at this time (2%), but behind the average pace over the past 5 years (4%), according to USDA’s latest crop progress report.
The USDA reported that 65% of the winter wheat crop is in "good" or "excellent" condition vs. 42% 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, analyst for UBS, expects the demand for U.S. farm equipment demand to remain flat 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. USDA forecasts cash net income to increase 8% year-over-year 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.”