All posts by Chuck Danehower, Extension Area Specialist - Farm Management

29 May 2012

Crop Progress

29 May 2012
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As reported by NASS on May 29, 2012

WHEAT HARVEST UNDERWAY

Wheat harvest has begun! Producers report that this start is among the earliest they recall. Great harvest weather, however, does not spell good planting and crop development. Dry conditions persisted last week leading to a near halt in planting the remainder of the cotton and soybean crops. All crops, however, continue to be rated in mostly good condition. Corn, at week’s end, was showing some signs of dry weather stress. Thrips continue to be reported in cotton and soybean fields. Continue reading →


24 May 2012

Weekly Crop Marketing Comments

24 May 2012
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Prices are through Thursday, May 24, 2012. Corn, cotton, soybean, and wheat prices are all down for the week through Thursday. The June U.S. Dollar Index closed at 82.49, up 0.84 for the week. The Dow Jones Industrial Average closed Thursday at 12,530, up 161 points since last Friday. Crude Oil closed at 90.81 a barrel, down 0.99 a barrel for the week. The market’s overall bearish tone this week has been focusing on the dollar and the weather along with talk of Chinese cancellations of sales of corn and soybeans. Continue reading →


22 May 2012

Crop Progress

22 May 2012
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As reported by NASS on May 21, 2012

COTTON AND SOYBEAN PLANTING CONTINUES.  Taking advantage of good planting weather, farmers continued with cotton and soybean planting in anticipation of weekend rains. Although some rainfall was received, most could still use a good soaking rain to help emerged crops develop. Over one-third of wheat crop is ripe, and farmers are readying combines for an early harvest possibly starting in the Continue reading →


18 May 2012

Weekly Crop Marketing Comments

18 May 2012
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Corn and wheat prices are up; cotton and soybean prices down for the week. The June U.S. Dollar Index is trading midday at 81.45, up 1.05 for the week. The Dow Jones Industrial Average before the close was down 405 points for the week at 12,416. Crude Oil traded before the close at 92.07 a barrel, down 3.58 a barrel for the week. The European Union financial crisis and its effect of strengthening the Dollar have been weighed this week against weather concerns. The dollar strengthened this week as troubles in both the political and financial arenas continued in Greece with concern that other countries will also be affected. This has been an ongoing saga throughout the year. Continue reading →


14 May 2012

Crop Progress

14 May 2012
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As reported by NASS on May 14, 2012

WEEKEND SHOWERS WELCOMED BY FARMERS

Showers and thunderstorms provided some needed relief this weekend, but it has been so dry recently that all regions of the state continue to need a general soaking rain. Crops continue to develop at rapid rate well ahead of normal. Corn planting is complete, all emerged and in mostly good condition. Cotton and soybean planting and tobacco transplanting were the main farm activities last week. Fertilizing, spraying post-emergence herbicides and hay harvest were also major farm activities. The wheat crop is ripening and farmers expect to begin harvest within the next two weeks. Continue reading →


11 May 2012

Weekly Crop Marketing Comments

11 May 2012
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Corn, cotton, soybeans and wheat prices are all down for the week. The June U.S. Dollar Index is trading midday at 80.39, up 0.80 for the week. The Dow Jones Industrial Average before the close was down 180 points for the week at 12,858. Crude Oil traded before the close at 95.84 a barrel, down 2.65 a barrel for the week. Several non-agricultural related factors have come together here at the end of the week to put additional pressure on prices. These include the news that bank J.P. Morgan Chase has taken $2 billion in trading losses in a trading group that manages risks the banks takes with its own money and disappointing industrial production data from China and India. Continue reading →


10 May 2012

Profitability Outlook

10 May 2012
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This table should be used as a guide as yields, prices, and expenses will vary among producers and locations. This table looks at crop prices as of May 10, 2012 for 2012 and can give a glimpse of what crop profitability is in Tennessee as of this date. One of the expense items that have to be watched is fertilizer. Fertilizer cost, particularly nitrogen prices have gone up recently for producers who did not have it already priced. I have updated the table below to reflect this higher cost.   For reference, in variable expenses below, fertilizer expense per acre is estimated as follows: cotton – $ 155, Soybeans – $53, Corn – $186 (includes 150 units of N), Milo – $145, and wheat/soybeans – $138. Continue reading →


10 May 2012

Comments on the May 10 USDA Supply & Demand Report

10 May 2012
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Corn

 

In today’s report, USDA updated the old crop stocks and put forth their first official estimate of the new crop year. This report is being perceived as bearish as old crop stocks were raised rather than cut and new crop stocks are projected to be more than double old crop stocks .For new crop stocks, this could be the largest estimate of the year as the fallout from corn prices trending lower, soybean prices stable to trending higher, and higher nitrogen prices could cause a few corn acres to shift to soybeans. A record yield is projected and to be achieved will depend on ideal conditions. Lower corn prices may also stimulate additional demand. Continue reading →