PRINTABLE VERSION   EMAIL TO A FRIEND   RSS FEEDS 14:56 UK, 16th Oct 2012, by Agrimoney.com
Winter wheat in top US state makes poor start

Winter wheat in America's top growing state has got off to a worse start than in the previous two years, themselves poor for early crop condition, stoking concerns over the "worrying" early progress of US seedlings.

US Department of Agriculture staff, in their first rating for the Kansas winter wheat crop, placed 42% in "good" or "excellent" condition, as of Sunday.

The figure was one point lower than the figure for October 16 last year, and the 45% in 2009 – numbers themselves considered weak, after the first reading in 2009 came in at 73% good or excellent.

While still too early to make any judgements on the impact of the weak start on final yield, Kansas wheat has typically not improved post-dormancy compared with its condition at the end of October, with last year an exception in producing a bumper yield after a poor start.

'More moisture still needed'

While officials gave no indication of the reason for the relatively poor start to crop condition, it comes amid lingering drought which has hampered germination of seedlings in many US states.

"More moisture is still needed… to improve wheat emergence," the USDA scouts said, estimating 44% of the Kansas crop had emerged so far, behind the average of 50%.

Nationwide, 44% of winter wheat, sown for harvest in 2013, has emerged, two points below the average for this time of year.

'Worrying start'

The slow pace of emergence "may create some concern about establishment leading into winter, particularly in the northern plains were significant moisture deficits persist", said Luke Mathews at Commonwealth Bank of Australia.

Wheat emergence in selected US states and (difference from average)

Missouri: 19%, (+8 points)

Kansas: 44%, (-2 points)

Colorado: 51%, (-21 points)

Montana: 25%, (-28 points)

Nebraska: 47%, (-30 points)

South Dakota: 11%, (-56 points)

National: 36%, (-8 points)

Source: USDA

In the northern plains state of South Dakota, only 11% of winter wheat has emerged, compared with a typical rate of 67%, hurt by dryness and below-normal temperatures.

"Temperatures cooled across the state during the week along with scant precipitation… with very limited amounts [of rain] or none state-wide." USDA scouts aid.

At broker FCStone, commodity risk consultant Michael O'Dea termed the weak start to emergence as "worrying", if flagging the grain's resilience.

 "You have to kill wheat nine times before it dies," he said.

'Wheat plantings to rise'

Mr O'Dea's comments, at the HGCA Grain Market Outlook conference in London, came as he forecast a rise in winter wheat sowings of some 4-5% in areas sowing hard red varieties, the majority of the US crop, and 5-10% in soft red areas.

The extra hope for seedings of soft red winter wheat, the type traded in Chicago and grown largely in the Midwest, reflected the ability of farmers to plant follow-on soybean crops which, while offering relatively low yields, looked a lucrative option given elevated prices.

"There are a lot of rewards on offer if they can double crop beans in these soft wheat areas," Mr O'Dea said.

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