Grain Futures: As of 4 p.m. on May 7, corn, soybean, and wheat futures were all lower compared to the week before.
Corn was $3.615/bushel for July 2015, down from $3.6625/bushel at last report. The September 2015 price for corn was $3.6725/bushel, and trading of December 2015 corn contracts checked in at $3.77/bushel, down from $3.835/bushel the week before.
The July 2015 soybean price was $9.75/bushel, down from the prior week’s $9.76/bushel. Soybeans for August 2015 were $9.685/bushel, and soybeans for November 2015 were posted at $9.51/bushel, down from $9.5225/bushel at last report.
Wheat for July 2015 was $4.7275/bushel, down from the prior week’s $4.74/bushel. September 2015 wheat slipped to $4.8075/bushel from the prior week’s $4.8375/bushel, and July 2016 wheat contracts were reported at $5.31/bushel.
Eastern Cornbelt: Growers continued to make good planting progress in Illinois, with both the corn and soybeans pace tracking ahead of the five-year average. Wet weather slowed progress in Ohio and Indiana, although sources said growers were making significant progress as the week advanced.
As of May 3, USDA estimated corn planting at 69 percent complete in Illinois, 21 percent in Indiana, and 15 percent in Ohio. While Illinois was tracking more than 20 percentage points ahead of the average pace, Indiana and Ohio remained well behind. The regional soybean crop was 12 percent planted in Illinois by May 3, compared with just 4 percent in Indiana and Ohio.
Western Cornbelt: Strong storms pounded parts of Missouri early in the week, bringing heavy rains that prompted flash flood warnings in Kansas City and St. Joseph. One source said parts of his trade area received five inches, with more in the forecast as the week advanced.
By midweek, another powerful system brought tornadoes and flash flooding to southern Nebraska, where as much as a foot of rain on May 6-7 caused extensive flooding along the Big and Little Blue Rivers. Most of Iowa saw an active period of fieldwork last week, but storms were expected in that state over the coming weekend.
Despite the week’s weather hurdles, growers were able to make significant strides in planting during the first days of May. Corn planting as of May 3 was 57 percent complete in Nebraska, 61 percent in Missouri, and 68 percent in Iowa, with all three states tracking well ahead of the five-year average pace. Soybean planting was also underway, with progress rated at 11-12 percent complete in Iowa and Nebraska, and 5 percent in Missouri.
California: In response to the ongoing drought, California’s Water Resources Control Board on May 5 adopted sweeping water restrictions across the state, ordering cities and water agencies to cut water use by 4 to 36 percent from 2013 levels, depending on the area.
The board warned that it could impose fines of up to $10,000 a day on water agencies who failed to meet the targets. The board also chose to exempt agriculture, which accounts for up to 80 percent of human water use in California.
Although farmers escaped the latest state restrictions, California’s agriculture industry – which is the country’s largest producer – has endured significant cutbacks in federal water supplies. Sources report that acreage is down for corn, cotton, and rice as a result. One source said the rice fertilizer season was in full swing in early May, but “will be short lived as rice acreage is off dramatically from two years ago due to the drought.”
As of May 3, USDA reported that 38 percent of the rice and 50 percent of the cotton had been planted in California, with the former tracking ahead of the average pace and the latter falling well behind. Sources continued to report an overall early