Return to the KASS Homepage
CROPS

KANSAS AGRICULTURAL STATISTICS
Kansas Department of Agriculture
Room 200, PO Box 3534
Topeka, KS 66601-3534
Phone: 785-233-2230

Released: March 31, 1999
Volume 99, No. 4


Text Box


INCLUDED
IN
THIS ISSUE:

PROSPECTIVE
PLANTINGS

GRAIN
STOCKS

MARKET

IMPLICATIONS


PROSPECTIVE PLANTINGS

Kansas growers expect to plant 19.3 million acres to the four major crops (wheat, sorghum, corn, and soybeans), down 2 percent from 1998, according to Kansas Agricultural Statistics. Wheat seeded in the fall of 1998 totaled 10.0 million acres, unchanged from the December forecast but down 7 percent from the previous year.

Sorghum acreage expected to be planted, at 3.60 million acres, is up 3 percent from a year ago. Corn planting intentions totaled 3.10 million, up 3 percent from the 1998 acreage. Soybean planted acreage is expected to be 2.60 million acres, up 2 percent from last year. Oat seedings are expected to be up 9 percent from 1998 at 120,000 acres. Barley seedings, at 16,000 acres, are up significantly from the 8,000 acres planted in 1998.

Sunflower acreage to be planted, at 260,000 acres, is up 44 percent from last year. Dry beans, at 23,000 acres, are up 15 percent from the previous year. All hay for harvest, at 2.80 million acres, is down 3 percent from 1998. Cotton is expected to be planted on 29,000 acres, up from 17,000 acres last year.

Table 1-- PROSPECTIVE PLANTINGS - MARCH 1, 1999
Crop Acreage Planted or to be Planted
Kansas United States
1998 Prospective
1999
1999 as %
of 1998
1998 Prospective
1999
1999 as %
of 1998
1,000 Acres Percent 1,000 Acres Percent
Wheat, All 10,700 10,000 93 65,871 63,029 96
    Winter 1/ 10,700 10,000 93 46,449 43,399 93
    Durum - - - 3,805 4,270 112
    Other Spring - - - 15,617 15,360 98
Sorghum, All 3,500 3,600 103 9,626 8,804 91
Corn, All 3,000 3,100 103 80,187 78,219 98
Soybeans 2,550 2,600 102 72,375 73,105 101
Oats 110 120 109 4,902 4,732 97
Barley 8 16 200 6,340 5,274 83
All Hay 2/ 2,900 2,800 97 60,016 60,093 100
Sunflowers 180 260 144 3,553 3,955 111
Beans, Dry Edible 20 .0 23 .0 115 2,010 .1 2,045 .5 102
Cotton 17 .0 29 .0 171 13,417 .9 13,944 .2 104
1/ Planted previous fall. 2/ Acreage for harvest.

U.S. PROSPECTIVE PLANTINGS

Corn growers intend to plant 78.2 million acres of corn for all purposes in 1999, down 2 percent from both last year and 1997. If these intentions materialize, this would be the lowest planted acreage since 1995.

Soybean producers intend to plant 73.1 million acres in 1999, up 1 percent from last year. If realized, this will be the largest planted area for soybeans on record.

Sorghum plantings are expected to total a record low 8.80 million acres, down 9 percent from last year and 12 percent below the 1997 total.

The 1999 all wheat planted area is expected to total 63.0 million acres, down 4 percent from 1998 and the lowest level in 26 years. Durum wheat acres are expected to increase to 4.27 million acres, up 12 percent from 1998. This will be the largest Durum area since 1982. Other spring wheat 1999 planted acres are placed at 15.4 million acres, down 2 percent from last year. If realized, this will be the smallest area since 1988. Of the total, about 14.5 million acres are Hard Red Spring Wheat.

All cotton plantings for 1999 are expected to total 13.9 million acres, 4 percent above 1998 and up 46,200 acres from 1997. Acreage of American-Pima cotton is down 7 percent from 1998, at 305,200 acres.

GRAIN STOCKS

Kansas wheat stocks in all positions totaled 232.1 million bushels on March 1, down 14 percent from December 1998 but up 9 percent from last March. Wheat stored in off-farm locations (mills, elevators, warehouses, and processors) totaled 202.1 million bushels and accounted for 87 percent of the total. On-farm stocks totaled 30.0 million bushels, compared with 25.0 million bushels last March.

Sorghum grain in all positions totaled 108.7 million bushels, down 37 percent from December 1998 and 10 percent below the level a year ago. Off-farm stocks accounted for 75.7 million bushels and on-farm stocks 33.0 million bushels.

Kansas corn stocks in all locations, at 192.7 million bushels, were down 24 percent from December but up 12 percent from stocks last March. Off-farm stocks were 132.7 million bushels, which accounted for 69 percent of the total corn stocks. On-farm stocks, at 60.0 million bushels, were up 25 percent from the 1998 March stocks.

Off-farm oat stocks totaled 650,000 bushels, down 8 percent from December and 51 percent below March 1998. On-farm stocks are no longer published separately for Kansas.

Kansas soybeans in all locations totaled 42.1 million bushels, down 32 percent from December and 15 percent from the 1998 March stocks. Off-farm stocks, at 26.1 million bushels, were down 26 percent from last year and accounted for 62 percent of the total soybean stocks. On-farm stocks, at 16.0 million bushels, were up 14 percent from last year.


U.S. GRAIN STOCKS

Corn stocks in all positions on March 1, 1999, totaled 5.70 billion bushels, 15 percent above March 1, 1998.

All wheat stocks March 1, 1999 are estimated at 1.44 billion bushels in all positions, up 24 percent from March 1, 1998, to the biggest March number since 1988. Disappearance for the quarter ending March 1 is 451 million bushels, down slightly from the same period in 1998.

Soybeans stored in all positions on March 1, 1999, totaled 1.46 billion bushels, up 21 percent from March 1, 1998.

Barley stocks in all positions on March 1, 1999, totaled 200 million bushels, up 11 percent from a year ago.

Oats stored in all positions on March 1, 1999, totaled 109 million bushels, 2 percent below the stocks on March 1, 1998.

Grain sorghum stored in all positions on March 1, 1999 totaled 226 million bushels, down 4 percent from March 1, 1998.

Table 2-- STOCKS OF GRAIN - MARCH 1, 1999, WITH COMPARISONS
Grain Position Kansas United States
Mar. 1,
1998
Dec. 1,
1998
Mar. 1,
1999
Mar. 1,
1998
Dec. 1,
1998
Mar. 1,
1999
1,000 Bushels
All Wheat On Farms 25,000 31,000 30,000 399,920 680,200 470,220
Off Farms 1/ 188,301 240,381 202,059 766,644 1,215,618 974,594
    TOTAL 213,301 271,381 232,059 1,166,564 1,895,818 1,444,814
Sorghum Grain On Farms 28,000 51,000 33,000 56,760 95,900 60,900
Off Farms 1/ 92,560 122,035 75,670 177,916 239,416 165,522
    TOTAL 120,560 173,035 108,670 234,676 335,316 226,422
Corn On Farms 48,000 105,000 60,000 2,975,000 5,320,000 3,570,000
Off Farms 1/ 123,934 149,283 132,680 1,964,898 2,731,924 2,125,546
    TOTAL 171,934 254,283 192,680 4,939,898 8,051,924 5,695,546
Oats On Farms * * * 58,800 81,500 61,700
Off Farms 1/ 1,324 710 650 52,418 61,850 47,588
    TOTAL * * * 111,218 143,350 109,288
Barley On Farms * * * 81,900 149,000 86,900
Off Farms 1/ 47 36 48 98,299 121,523 113,526
    TOTAL * * * 180,199 270,523 200,426
Soybeans On Farms 14,000 23,000 16,000 637,000 1,187,000 815,000
Off Farms 1/ 35,364 38,868 26,102 565,922 999,033 643,280
    TOTAL 49,364 61,868 42,102 1,202,922 2,186,033 1,458,280
1/ Includes stocks at mills, elevators, warehouses, terminals, & processors.


Text Box

MARKET IMPLICATIONS
by Bill Tierney, Kansas State University - Extension Service

The total number of acres planted to all crops was slightly less than industry expectations, with total prospective plantings 4 million acres less than last year. Since 1996, the first year of "Freedom to Farm" the area seeded to principal crops has declined 6.4 million acres (about two-and-a-half percent). The area harvested as hay has declined slightly more than one million acres or about 2 percent.

There is a tendency for final corn acres to be less than and final soybean acres to be more than the prospective plantings report. Acres switch from corn to soybeans usually as a result of delayed corn plantings. There does not appear to be a strong statistical relationship between changes in corn and soybean planted acres (versus prospective plantings) and changes in the ratio of corn to soybean prices. Generally speaking, final seeded acres are relatively close to prospective plantings. Two-thirds of the time, final corn acres are within 2.3 percent of prospective plantings. Similarly, final soybean acres are within 2.9 percent of prospective plantings. Final seedings of sorghum and spring wheat, however, do vary considerably from final acres. Two-thirds of the time, spring wheat and sorghum acres are within 7.7 percent of prospective plantings.

The USDA's stocks report indicated that March 1 corn stocks were over 750 million bushels larger than last year and were at the high end of the range of industry expectations. Corn stocks were also the largest that they had been since 1988. The implication is that the USDA will be forced to lower its projection of corn feeding in its next supply-demand projection. In addition, export demand for corn is showing signs of slackening. As of the middle of March, corn export commitments were about 1.3 billion bushels, about 235 million bushels more than last year but nearly 95 million bushels behind the "average" pace needed to meet the USDA's March annual export projection of 1.8 billion bushels. It's possible that the combination of lower feed use and smaller exports could add another 125-200 million bushels to the USDA's next projection for corn ending stocks.

Soybean stocks were a record 1,458 million bushels and 255 million bushels more than last year. However, the report came in at the low end of the range of industry expectations, suggesting that soybean residual use is larger than expected or that the 1998 crop was over estimated. Although a record, soybean stocks are not excessive when measured as a percent of the total disappearance in the first half of the year. However, when U.S. soybean stocks are combined with the projected new crop supply of S. American soybeans, the combined stocks of soybeans in the Western Hemisphere is at or near record levels (relative to the rate of usage).

Given this latest USDA information, farmers may want to consider making some additional sales of new crop wheat, feed grains, and oilseeds. Of the three principal crop groups, oilseeds appear to have the greatest downside price risk. Oilseed producers may want to purchase November puts at this time. Wheat prices may hold up until late April or early May, but then, if winter wheat crop conditions are average or better, prices will probably begin a decline of 10-15 percent off the highs it sets in March. Feed grain prices, also may find some support until it is clear that the 1999 planting is progressing at an average pace. If corn planting does proceed at an average pace, producers may want to price a substantial portion of their expected crop by purchasing December puts.



Doug Hartwig & Deonne McCray, Agricultural Statisticians
Eldon J. Thiessen, State Statistician
Eddie Wells, Deputy State Statistician

Return to the KASS Homepage