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Crop report shows impact of drought

By from news reports

Date Modified: 02/05/2013 4:21 PM

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The bevy of reports released Friday by USDA's National Agricutlural Statistics Service offered a couple surprises for the trade.

The reports were neutral for soybeans, said Mike Krueger of The Money Farm during a Friday morning conference call organized by the Minneapolis Grain Exchange. They were bullish for corn because the quarterly stocks number was 200 million bushels below expectation and for wheat because the trade was looking for an increase in hard red winter wheat acreage that didn't materialize.

Hard red winter wheat acreage is unchanged or slightly larger than last year at 29.1 million acres. The trade was looking for an increase in acres of 1 million to 1.5 million acres, Krueger said. The question now would be why didn't those acres get planted, especially with good crop insurance price guarantees. The logical conclusion, he said, would be the ground was simply too dry to plant.

On Dec. 1, corn stocks were 8.03 billion bushels nationwide, down 17 percent from 2011. The September through November disappearance was 3.74 billion bushels, compared with 3.84 billion bushels during the same period in 2011.

In Iowa, 1.876 billion bushels of corn were produced, down from 2.356 billion in 2011. The state's yield dropped from 172 bushels per acre in 2011 to 137 bushels per acre in 2012.The number of acres harvested was steady at 13.7 million.

Soybean acres harvested in Iowa in 2012 increased to 9.3 million acres from 9.2 million a year earlier, but production was down by 61 million bushels. Iowa farmers harvested 413 million bushels of soybeans in 2012, compared to 475 million a year earlier. Yield per acre dropped from 51.5 in 2011 to 44.5 in 2012.

There were 1.97 billion bushels of soybeans stored in the United States as of Dec. 1, which is down 17 percent from Dec. 1, 2011.

Soybean disappearance from September through November 2012 was at a record high 1.22 billion bushels, up 30 percent from the same period in 2011.