US Corn Futures Settles Flat On Planting Concerns

Corn futures were mixed on Tuesday. May futures were 3 3/4 cents higher at $7.66 1/4. The July contract was 4 1/4 cents higher at $7.72 3/4. December was 5 3/4 cents lower at $6.75 3/4.

USDA reported corn planting progress as of April 24 at 9% complete, up only 2 points from a week ago and well below 46% a year ago and the ten-year average of 23%. At only 9% planted nationally, this is one of the lowest figures in the last 18 years, slightly exceeding 1995 and 2008 both at 7% planted and matching 1999 at 9%.

Progress is expected to climb to only about 20% complete as of May 1, still one of the lowest in the last twenty years. Current forecasts suggest some improvement in planting weather in early May, but the window for optimal planting will close by about May 10 in many areas.The correlation between planting date and yield as of May 1 is not very good, but imply possible yield losses nationally of 2 to 3 bushels per acre. But if less than 50% of the crop is planted by May 10, historically, yields tend to fall well short of trend. Based on current planting progress and the weather forecast reaching 50% planted as of May 10 this year will be a struggle.

(Source: http://www.indiainfoline.com/Markets/News/US-Corn-Futures-Settles-Flat-On-Planting-Concerns/3664429076)