CORN,BEANS LITTLE CHANGE OVERNIGHT, EXPORT SALES DOWN FOR CORN, UP FOR SOYA BEANS.

Corn, Beans Little Changed as Investors Weigh Wet Weather, Global Output
Grains and soybeans were little changed in overnight trading as investors weigh wet weather in the Midwest vs. large global production.

Rain continues to fall in many parts of the Midwest and storms are likely over the weekend in from Nebraska to Ohio. That is delaying planting in some areas, growers said, while causing concern about replanting in others. 

Still, global production is keeping a lid on prices. World corn output in the marketing year that ends August 31 is forecast at 1.07 billion metric tons, easily a record, according to the U.S. Department of Agriculture.

That will decline in the following year – to the second-most on record at 1.033 billion tons, according to the USDA.

Corn futures for July delivery rose ¾¢ to $3.70 a bushel overnight on the Chicago Board of Trade.
Soybean futures fell 1¾¢ to $9.37¾ a bushel overnight. Soy meal lost 10¢ to $304.60 a short ton, and soy oil futures fell 0.04¢ to 32¢ a pound.

Wheat for July delivery rose ½¢ to $4.31¼ a bushel in Chicago, and Kansas City futures gained 1¾¢ to $4.33 a bushel.

2. U.S. Corn Sales Decline, Soybeans Improve Week-to-Week, Wheat Mixed
Sales of U.S. corn to overseas buyers dropped while soybean sales improved last week.

Exporters sold 457,200 metric tons of corn for delivery in the 2016-2017 marketing year, down 35% from the prior week and 33% from the four-week average, the Department of Agriculture said in a report.

Japan was the biggest buyer at 227,400 metric tons, followed by Mexico at 68,600 tons and Taiwan at 67,000 tons. South Korea purchased 62,800 tons and Bangladesh bought 53,400 tons. Unknown buyers cancelled a purchase of 120,000 tons, and Nigeria cancelled a 50,000-ton buy, the USDA said.
Soybean sales rose 33% from the previous week to 472,700 tons, the government said. The total was up 9% from the four-week average.

Unknown buyers were the biggest purchasers at 148,500 tons, followed by China at 130,000 tons. Pakistan took 65,000 tons, and Canada bought 31,400 tons

Wheat for delivery in the marketing year that ends May 31 totaled 201,900 tons, down 19% from the prior week but up 49% from the four-week average, the USDA said. Mexico was the big buyer at 119,500 tons, followed by Venezuela at 60,000 tons. Japan bought 56,300 tons, and Taiwan purchased 52,700 tons.

For 2017-2018 year that starts June 1, sales totaled 342,900 tons. Mexico was the biggest buyer at 231,700 tons, followed by Guatemala at 37.700 tons. Unknown buyers bought 28,400 tons, and South Korea purchased 16,000 tons, the USDA said.

3. Storms to Bring Rain to Much of Midwest This Weekend, Mississippi River Still Flooding

More rainfall is expected in parts of Nebraska, Iowa, Illinois, and Indiana this weekend, which likely will keep farmers out of fields in many areas.

Scattered thunderstorms are likely this weekend in Nebraska as a convective complex moves through the Midwest, according to the National Weather Service. The storms likely won’t bring severe weather but incessant rains.

Storms also are expected to develop across much of Iowa today, some of which might become severe, the NWS said.

“Gusty winds and hail will be the primary threats with any stronger thunderstorm,” the NWS said. “Locally heavy downpours will also accompany the thunderstorms, possibly producing ponding of water on roads and in drainage ditches. The Mississippi River is experiencing flooding.” BY TONY DREIBUS.

JUNE 1ST IS AN IMPORTANT CROP INSURANCE DATE

The frequent rains that soaked parts of the Corn Belt this spring have left many corn and soybean fields unplanted or with flooded areas that need to be replanted. Some producers are wondering what options they have under their multiple peril crop insurance policies. The first step is notifying your crop insurance agent as soon as possible and understanding crop insurance provisions.

In Iowa, the crop insurance late-planting period for corn begins on June 1 and varies across the Corn Belt. You can still plant corn after this date, but the insurance guarantee on those acres is reduced by 1% per day until planted. Corn acres planted after June 25 will receive insurance coverage equal to 60% of their original guarantee.

Producers should keep accurate records of planting dates on all remaining acres for both crop insurance and Farm Service Agency (FSA) purposes. The late planting period for soybeans in Iowa is June 16 through July 10.

Unplanted corn acres as of June 1

Beginning June 1, producers with unplanted corn acres have three choices.

•  Plant corn as soon as possible with a reduced guarantee.
•  Shift to soybeans with full insurance coverage.
•  Apply for prevented planting. Prevented-planting acres are insured at 55% of their original guarantee for corn and 60% for soybeans. A cover crop can be established on those acres or the land left idle (black dirt).

Acres that have been planted, but need to be replanted, may qualify for a special replanting insurance payment. Payments are based on the value of 8 bushels of corn or 3 bushels of soybeans per acre, times their respective projected insurance prices determined in February.

For 2017, that is about $32 per acre for corn and $31 per acre for soybeans, respectively. To qualify for an indemnity payment under the replanted or prevented planting provisions, a minimum area of 20 acres or 20% of the insured unit must have suffered loss, whichever is smaller.
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Producers should communicate with their crop insurance agent before making decisions about replanting or abandoning acres.

Establishing a cover crop is not required on prevented planting acres, but highly recommended. The rules set by USDA’s Risk Management Agency (RMA), which oversees the federal crop insurance program, do not require a cover crop.

However, RMA encourages cover crops and insureds will receive a full-prevented planting payment — even if they choose not to plant a cover crop. Leaving unplanted or abandoned acreage idle (black dirt) is probably not the best agronomic choice. Likely cover crop seed includes oats, wheat, barley, or millet.

Keep in mind, if you plant any kind of cover crop you cannot harvest or graze those acres until after November 1.

Expect most of Iowa fields will be planted this spring. A few acres may require replanting. For crop insurance purposes, these fields will be in the delayed planting or replant situation. Regardless, producers should keep good records of planting dates and acres for both crop insurance and FSA acreage certification. Write down the dates you planted, the crop, number of acres, and reference the farm name or number. Work with your crop insurance agent and understand the basic provisions of crop insurance. BY STEVE JOHNSON.

LEADERS OF SENATE AGRICULTURE COMMITTEE SAY NO TO FARM BILL CUTS.

Two days after President Trump proposed large cuts in food stamps and farm supports, the leaders of the Senate Agriculture Committee spoke out against funding cuts as the panel prepares to write the 2018 farm bill. Committee chair Republican Pat Roberts, took aim at reduced farm supports, particularly crop insurance, saying “Now is not the time for additional cuts.” The panel’s senior Democrat, Debbie Stabenow, opposed proposed cuts in rural development and public nutrition as well.

“The proposal cuts $231 billion from farm bill programs, which would make a five-year farm bill virtually impossible to pass,” said Stabenow. The administration proposed cuts 10 times larger than those written into the 2014 farm law.

The fiscal 2018 budget proposed by the White House would cut food stamps by $193 billion, or 25%, over 10 years, and crop insurance by $29 billion. It would also downsize land stewardship initiatives and eliminate many rural development programs.

At a hearing on the agricultural economy, Roberts pointed to a slump in both farm income and commodity prices since the collapse of the agricultural boom in 2013. USDA chief economist Robert Johansson said the farm sector was “in a very flat price environment,” and Nathan Kaufman, an economist at the Kansas City Federal Reserve Bank, said farmers were using up their cash reserves due to tight margins. “We haven’t seen it turn into an issue of solvency,” said Kaufman, because land values have held up well. Land is four fifths of farm assets.

“One thing is clear—times are challenging right now in farm country,” said Roberts. “Farmers, ranchers, and rural families understand fiscal responsibility. They want to do their parts. But now is not the time for additional cuts.”

“We need to make sure that producers have risk-management tools at their disposal. Let me emphasize that crop insurance is the most valuable tool in the risk-management tool box,” Roberts said, repeating the sentence on crop insurance twice. Crop insurance is the largest strand in the farm safety net, worth nearly $8 billion a year.

Stabenow said the Trump budget “would have devastating effects on our farmers and rural families. … More than 500 groups representing farmers, conservationists, rural communities, and food advocates wrote a letter that we should not make — we should not make — any further cuts. And I agree,” she said. BY CHUCK ABBOTT.

TIMING AND TEMPERATURE: KEY FACTORS TO CONSIDER BEFORE REPLANTING.

One way to describe the 2017 planting season? Soggy. If you have standing water in your planted fields, you may be considering replant. “Survival of young corn plants under these conditions depends on several factors,” says Roger Elmore, Extension cropping systems agronomist at University of Nebraska–Lincoln.

“Smaller seedlings are more susceptible than larger seedlings,” says Elmore in a University of Nebraska Crop Watch article. But the effect of standing water on germinating seeds is not well known. Hybrids will respond differently to standing water.

48 Hours

Timing is everything. If there’s standing water in your field, you have 48 hours before the oxygen supply will become depleted, says Elmore.

“Cool air temperatures help to increase the possibility of survival,” he says. “Yet, we would not expect survival of germinating seeds to be greater than that of young plants; they should not be expected to survive more than four days.”

Before emergence: Seeds can survive up to four days.

Prior to the sixth leaf and underwater (6 inches of water on surface) with a temperature less than 77°F.: Will survive for four days. Longer flooding results in lower yields especially at lower nitrogen levels. Some plants will be buried by sediment and residue and may not survive.

Prior to the sixth leaf and underwater (6 inches of water on surface) with a temperature greater than 77°F.: May not survive 24 hours.

Corn prior to sixth-leaf stage in saturated, cold soil with flooding: Seed rots, seedling blights, various other pathogens, crazy top.

If it becomes necessary to replant, consider which herbicides have been sprayed, says Randy Hagen, knowledge transfer manager at Monsanto. “Some crops can’t be planted back to a field that had a certain herbicide.”

Don’t make a drive-by assessment either, advised Hagen. “Investigate the stands by going out and doing population stands in several spots of the field.”

Also, as we get closer to June, it’s time to start considering switching maturities. “If you have an option to do silage, you may want to go in and replant with the same maturity,” says Hagen.

However, for grain, there may be a consideration to move to an earlier product. Hagen recommends looking at soil type, early frost dates, and yield potential of the of the original product before moving to an earlier maturity. If replanting goes into June, consider a hybrid five days earlier or so, he says.

Below are seven factors Elmore recommends considering when dealing with flooded fields.

1. The longer an area remains ponded, the higher the risk of plant death.
2. Completely submerged corn is at higher risk than corn that is partially submerged. Plants that are only partially submerged may continue to photosynthesize, albeit at limited rates.
3. Corn will survive longer when temperatures are relatively cool — mid-60s or cooler — than when it's warm — mid-70s or warmer.
4. Even if surface water subsides quickly, the likelihood of dense surface crusts forming as the soil dries increases the risk of emergence failure for recently planted crops.
5. Extended periods of saturated soils after the surface water subsides will take their toll on the overall vigor of the crop.
6. Associated with the direct stress of saturated soils on a corn crop, flooding and ponding can cause significant losses of soil nitrogen due to denitrification and leaching of nitrate N.
7. In addition, diseases and other problems can develop due to silt in the whorls. BY KACEY BIRCHMIER.

3 BIG THINGS TODAY, MAY 29TH.

1. Chicago Board of Trade Closed in Observance of Memorial Day
The Chicago Board of Trade is closed in observance of the Memorial Day holiday. Trading will resume at its normal time this evening.

2. Money Managers Most Bearish on Beans Since Last Week of 2015
Money managers increased their bets against rising soybean prices to the largest level since the last week of 2015.

Speculative investors were net-short by 69,775 soybean contracts in the week that ended on May 23, according to the Commodity Futures Trading Commission. That’s up from 39,312 contracts a week earlier and the largest level since the seven days that ended on Dec. 29, 2015.

Investors likely increased their net-short positions in soybeans amid growing global supplies and expectations for a large U.S. crop.

World output is forecast at a 348.04 million metric tons in the year that ends on Aug. 31., according to the U.S. Department of Agriculture.

U.S. production is expected to reach a record 4.307 billion bushels this year before declining to 4.255 billion bushels next year, the USDA said in a report earlier this month.
Net-shorts in corn, however, declined to 173,188 contracts, the lowest in three weeks, according to the CFTC.

Bets against higher prices in soft-red winter wheat fell to 120,701 contracts from 130,695 the prior week, while net-long positions in hard-red winter wheat were almost unchanged at 1,686 contracts, the CFTC said.

3. Isolated Thunderstorms Expected in Parts of Midwest But Region Mostly Dry Monday

Isolated thunderstorms are expected in parts of the U.S. Midwest including areas in Iowa, Illinois and Michigan, though no severe weather is expected.

In Iowa, thunderstorms are possible today and this evening before giving way through Wednesday when another system will move through the state. The storm later this week could produce “gusty wind and hail” and locally heavy rain, the National Weather Service said in a report early Monday.
In Illinois there’s a “limited” risk of thunderstorms today, but flooding will continue along portions of the Kankakee River. Storms will spark up again later this week, though the odds of anything major are limited, the NWS said. Lightning is expected.

Storms, however, are forecast for today and tonight in parts of Michigan, though severe weather isn’t expected. Starting Thursday, another warm front will move through the state, according to the agency. BY TONY DREIBUS.