Crop Market Update – Sept 20, 2013
Cereal Grains & Soybeans (by: Brian Williams)
The September prevented planting acreage report was released by the FSA earlier this week. While the report did not contain many surprises with only minor changes from last monthâ€™s report, it does indicate that next month we may see some changes in the WASDE report. The FSA currently estimates that there were 3.57 million prevented corn acres and a total of 91.4 million planted acres. This is much less than the WASDEâ€™s estimate of 97.4 million planted acres. Corn harvest is underway in several areas of the country with about 4% of the U.S. crop now out of the field. Warm, dry conditions have helped Mississippi producers harvest 80% of their corn crop, slightly ahead of average. The FSA is currently estimating about 1.69 million prevented acres and 74.66 million planted acres of soybeans this year. The FSA estimate for planted acres is much less than the 77.2 million acres reported in the September WASDE report. Soybean development is slower than average this week in Mississippi with 33% of the crop dropping leaves and 53% turning color compared to 5-year averages of 64% and 82%, respectively. Mississippi soybean conditions are much better than the rest of the country with 78% of the crop rated good or excellent compared to a national average of only 50%. In the general economy, many were expecting the Federal Reserve to announce plans to begin backing off on the quantitative easing program currently in place. However, earlier this week it was announced that the Fed will continue to purchase bonds at their current pace. The announcement had a positive impact on financial markets, but weakened the value of the dollar.
Cotton (by: John Michael Riley)
Cotton prices ended the week mostly steady. After starting the week off on a sour note, prices rose Tuesday and Wednesday. The condition of the crop continues to decline as the percentage of cotton rated “Good” and Excellent” fell two percentage points. The FED, on Wednesday, said they would stay the course with their infusions in an attempt to further stimulate the U.S. economy. Most expected the FED to decrease their position and thus, the announcement proved very beneficial to cotton prices as equity markets rose and the U.S. dollar index dropped. The sentiment was short lived as equities fell back and the dollar strengthened, all of which pressured cotton prices.
* Futures Market Recap:
|Futures Quotes (Contract)||This Friday||Last Friday||% Change|
|Corn (Dec 2013)||$4.51||$4.59||-1.74%|
|Soybeans (Nov 2013)||$13.15||$13.81||-4.78%|
|Cotton (Dec 2013)||84.52||84.46||0.07%|
|Wheat (Dec 2013)||$6.46||$6.41||0.78%|
|Rice (Nov 2013)||$15.55||$15.42||0.81%|
|Source: Corn, soybean, wheat, and rice prices are from the CMEGroup; Cotton price is from the Intercontinental Exchange|
|Prices are $/bu for corn, soybeans and wheat, cents/pound for cotton, and $/cwt for rice|
* Cash Market Prices:
|Miss. Cash Quote||This Friday||Last Friday||% Change|
|Note: Corn, soybeans, and wheat are averages from Greenville, Belzoni, Greenwood, and Indianola, MS ($/bu); Cotton is the South Delta base grade quote (cents/lb)|
|Source: All prices are from USDA, Ag Marketing Service|
** Support for this and other Extension commodity marketing activities from Cotton, Inc. and the Mississippi Soybean Promotion Board are appreciated.