TheCropSite Newsletter - 14 August 2012

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Tuesday 14th August 2012.

Sarah Mikesell
Senior Editor

Editorial: Welcome to TheCropSite Newsletter

To start, a brief commercial message - next week when you receive your newsletter, the FROM will say TheCropSite Newsletter rather than [email protected] And the SUBJECT line will be whatever intriguing topic I pick to write about. Bottom line… please keep an eye out so you don't lose me next week. : )

Last week was a BIG report week. Further down, you'll see a full list of all reports, but today we going to look at global grain supplies in the USDA's World Agricultural Production August 2012 report.

China Corn: Up 2.6%

China's corn production for 2012/13 is forecast at a record 200.0 million tons, up 5.0 million or 2.6 percent from last month and up 3.7 percent from last year's record crop. Corn production in China has doubled in the past 20 years (from 95.4 million tons in 1992/93) due to increased planted area and rising yields.

EU Corn: Down 6%

Corn production in the European Union (EU) is forecast at 61.5 million tons, down 3.9 million or 6 percent from last month, and down 3.9 million or 6 percent from last year. Yields have fallen due to an extremely hot, dry summer in Europe's southern corn area. The crop is maturing two to three weeks ahead of schedule; harvest will begin in late August.

Argentina Corn: Up 12%

Argentine corn production is forecast at 28.0 million tons, up 3.0 million or 12 percent from last month and up 33 percent from last year. Newly developed adapted hybrids, including recently registered quad-stacked biotech corn, will be favorable for corn yields.

Brazil Soybeans: Up 24%

Brazil's total soybean production is forecast at a record 81.0 million tons, up 3.0 million from last month and up 15.5 million tons or 24 percent greater than last year's drought reduced crop.

Brazil's total corn production is forecast at 70.0 million tons, up 3.0 million from last month but down 2.8 million tons from last year's bumper harvest.

Brazilian farmers in the southern hemisphere are expected to respond to high US prices by planting record soybean and corn areas during the next several months. The favorable soybean-corn price ratios should motivate Brazilian farmers to plant more soybeans during September-December, with first-season corn area expected to be less than last year.

Russia Wheat: Down 12%

Russia wheat production is forecast at 43.0 million tons, down 6.0 million or 12 percent from last month and down 13.2 million or 24 percent from last year.

China Cotton: Up 2%

China's cotton production is estimated at 31.0 million bales (6.75 million tons), up 0.5 million or about 2 percent from last month but down 2.5 million or 7.5 percent from last year. Reports indicate crop condition is better than average.

India Rice: Down 2%

The USDA forecasts India's rice production at 98.0 million tons, down 2 million tons or 2 percent from last month and down 6.3 million or 6.1 percent from last year. This significant decrease from last year's record production is primarily due to a projected reduction in planted area and lower yield potential as a result of deficient monsoonal rainfall.

To read more on the impact of recent USDA reports to US crops and markets, click here.

Have a great week!

This Week's Articles and Analysis

Iowa Farm Outlook - Weather Continues to Dominate the Markets
The drought has become the major topic of conversation as its impacts reach across agriculture. Natural disasters like this have many impacts on an economy, from the direct impacts on agricultural production to the indirect consequences on rural economic activity and retail food pricing, writes Chad Hart, Assistant Professor, Extension Grain Marketing Specialist at the University of Iowa.

Delaying Permanent Water on Drill Sown Rice
Four years of research on two soil types have proven delayed permanent water to be a viable management option for drill sown rice. 17% (2.5 ML/ha) average saving in water use compared to conventional drill sown rice and 15% average increase in water productivity.

Rapid Assessment of Plant Drought Tolerance Now Possible
UCLA life scientists, working with colleagues in China, have discovered a new method to quickly assess plants’ drought tolerance. The method works for many diverse species growing around the world. The research, published in the journal Methods in Ecology and Evolution, may revolutionize the ability to survey plant species for their ability to withstand drought, said senior author Lawren Sack, a UCLA professor of ecology and evolutionary biology.

Natural Magic to Counter Africa's Witchweed Crop Menace
Africa is the only continent that cannot feed itself: food production per person is about the same as it was in 1960 (ref 1, ref 2). One of the reasons is the prevalence of African witchweed, also known as Striga, a root parasite of staple cereal crops such as maize, sorghum, rice and millet.

New Game-Changing Approach for Drought Monitoring
Droughts are more than simply climate phenomena. They can have profound social, environmental, and economic impacts and can also be a major threat to food security throughout the world.

Market Reports