2022 planting starts on pace with five-year average
USDA released its first Crop Progress report Monday afternoon, marking the official start to the 2022 growing season. These reports will run weekly through the end of November, and look at the progress and condition of various crops on a national and state-by-state scale.
As of Sunday, the report pegged corn planted at 2%, which matches the prior five-year average pace.
Next week, the USDA plans to include soybean planting progress in its weekly update.
Spring wheat planted was reported at 3% compared with 2% for the prior five-year average.
Winter wheat headed came in at 4% vs. the 3% five-year average. Winter wheat condition was 30% good/excellent and 36% poor/very poor. This compares with the five-year average of 53% good/excellent and 16% poor/very poor. It is still early for winter wheat, but traders are surely watching the ratings closely and considering the short- and mid-term weather maps.
Oats planted was reported at 25% vs. the five-year average of 26%.
The report also indicated that nationwide, topsoil moisture is rated as 50% adequate and 13% surplus.
U.S. weather, in general, is slightly favoring the bull camp as showers across the Midwest through mid-month are expected. The midrange forecast (last half of April) is suggesting wet forecast for Missouri, southern Illinois, Indiana, and Ohio. If we see early-season planting delays for corn, we could see traders quickly add risk premium to the new-crop contracts as there is very little margin for error this growing season.
About the report: Crop progress and condition estimates are based on survey data collected each week from early April through the end of November, according to the USDA. The non-probability crop progress and condition surveys include input from approximately 3,600 respondents whose occupations provide them opportunities to make visual observations and frequently bring them in contact with farmers in their counties. Most respondents complete the questionnaire on Friday or early Monday morning and submit them to the National Agricultural Statistics Service (NASS) field offices in their states by mail, telephone, fax, email, or through a secured internet website. A small number of reports are completed on Thursday, Saturday, and Sunday. Regardless of when questionnaires are completed, respondents are asked to report for the entire week ending on Sunday, according to the Crop Progress Report.
About the Author: Bob Linneman is a commodities broker with Kluis Commodity Advisors. Linneman grew up on a diverse farm in eastern South Dakota. Between milking cows, managing a beef herd, and farming various crops, he experienced many aspects of agriculture firsthand. After graduating from North Dakota State University with a degree in business, he moved to Hawaii with his wife. There he was an associate portfolio manager for a fixed income firm that managed $2 billion in assets. After nearly two years in Hawaii, he moved back to the Midwest and began his career in commodities. Linneman is licensed as a Series 3 and Series 30 commodity broker.