Marketing and Crop Insurance Update - Monday, 27 February 2012

Last week the Ag Outlook Conference was held and currently they are predicting 94 million acres will be planted in 2012, many analysts disagree and feel that number could be as high as 95+ million acres, if this occurs crop prices could be greatly impacted. Right now we have economic incentives to plant corn since the corn to soybean ratio is at 2.3.  In order for the market to buy more soybean acres for 2012 it is believed that the ratio needs to be at 2.5 to 2.6 in order to see that switch occur.  Elwynn Taylor has mentioned on Twitter that the month of March is looking warm and East of I-35 looks moist. The La Niña weather pattern continues to slowly weaken, we will continue to watch this and keep you updated with what is happening with this weather pattern that so greatly affects our temperatures and rainfall totals.

AgRural in Brazil estimated the Brazil soybean crop now at 68mmt versus 70.2mmt in January; AgroConsult has adjusted their numbers from 71mmt to 69.9mmt.  South America has received good rains again over the weekend and the forecast for the next 2 weeks continue to show favorable rains for that region.  The big question is whether or not these rains arrived early enough to add bushels to the crop, many believe it arrived too late, the final result won’t be known for some time.  The next big fundamental USDA report will be March 9th.  This is the Supply and Demand report, watch to see if the USDA lowers the South American crop yield and increases expected U.S. corn and soybean exports.

Last week we saw a lower value to the dollar and higher crude prices which should have given strength to the grains but the hedge pressure from the Funds pushed the corn market lower in an effort to protect their profitable positions. On a positive note the Chinese bought soybeans last week and again overnight and this is sparking a rally in the soybean market.

 

CROP INSURANCE

Remember that the crop insurance sign-up deadline is quickly approaching on March 15th.  In addition to our traditional crop insurance coverage options our agents have a new product this year that they will be showing you called Trend Averaging, this unique product allows a significant boost in your APH which is definitely an advantage you will want to consider. Production Hail is another distinctive product that everyone should take a look at; even if you choose to insure your acres as Enterprise Units they are treated as individual units with this product.  Spring will soon be here and below is a list of dates to make note of.

Important Crop Insurance Dates:

Sign-up Deadline:  March 15th, 2012

Early Planting Dates in Iowa:  Corn April 11th, 2012  AND  Soybeans April 21st, 2012       

                        

EVENTS

Remember the Hawkeye Farm Show this week at the UNI Dome in Cedar Falls, Iowa.  The show hours are from 9:00 a.m.-4:00 p.m. each day February 28th, 29th, and March 1st admission and parking are free.  Stop by the Ag Performance booth and say hello to our sales consultants they look forward to seeing you and answering any questions you may have.

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