Today, USDA reported the 2011 corn crop is 91% emerged, but is off to a start that remains behind last year’s crop (97%), as well as the average pace over the last 5 years (96%), according to Henry Kirn, analyst for UBS Investment Resarch.
USDA also reported 69% of the corn crop is in "good" or "excellent" condition, above last week’s 67%, but below last year’s 77%.
Kirn also reports that corn futures prices rose 7% last week; soybeans and wheat were flat. “Corn prices increased 7% last week and are 121% above year ago levels. Soybean prices declined less than 1% last week but are up 45% year-over-year, while wheat prices also declined less than 1% over the past week, but are up 65% year-over-year,” Kirn says.
“We continue to see solid farm profitability for 2011, and note that corn, soybean and wheat prices remain well above historical averages. Accordingly, USDA forecasts farmer cash net income to increase 8% year-over-year in 2011,” says Kirn.
Using nearest expiring futures prices:
- Corn closed at $7.83 per bushel, up 7% from last week and up 121% from last year.
- Soybeans closed at $13.83 per bushel, down less than 1% from last week, but up 45% from last year.
- Wheat closed at $7.43 per bushel, down less than 1% from last week, but up 65% from last year.