Released: July 11, 2001
Volume 01, No. 7
WHEAT
PRODUCTION
CROP
ACREAGE
GRAIN
STOCKS
MARKET
IMPLICATION
S
Kansas growers planted 20.2 million acres to the four major crops (wheat, sorghum, corn, and
soybeans), up 3 percent from 2000. Wheat seeded last fall totaled 9.9 million acres, unchanged
from the previous forecast but up 1 percent (100,000 acres) from last year. Acreage for harvest
is expected to be 8.4 million acres, unchanged from the previous forecast but 11 percent
(1,000,000 acres) below a year ago.
Sorghum acreage planted and to be planted, at 4.0 million acres, is up 14 percent from last year.
Kansas ranks first in the nation in sorghum acreage. The acreage intended for harvest as grain,
at 3.75 million acres, is up 17 percent from last year.
Corn planted acreage, at 3.3 million acres, is 4 percent below last year's planted acres. Farmers planted 38 percent of their
corn acreage with varieties developed using biotechnology. Twenty-six percent of the acreage was planted with insect
resistant only varieties containing bacillus thuringiensis (Bt) and 11 percent of the acreage with herbicide resistant varieties
developed using biotechnology. Stacked gene varieties, those containing both insect and herbicide resistance, were planted
on 1 percent of the corn acreage. Acreage expected to be harvested for grain is 3.1 million acres, down 3 percent from last
year.
Soybean plantings are expected to total 3.0 million acres, 2 percent above a year ago and the largest planted acreage of
soybeans in Kansas history. Producers planted 80 percent of the soybean acreage to herbicide resistant varieties in 2001.
Expected acreage for harvest, at 2.9 million acres, is 16 percent above last year and, if realized, will be the largest harvested
acreage for soybeans in Kansas history.
Oats planted in 2001, at 100,000 acres, is 9 percent below last year. Oats expected to be harvested for grain, at 45,000 acres,
is down 5,000 acres from the previous year. Barley planted acreage, at 7,000 acres, decreased 1,000 acres from last year.
Expected acreage for harvest, at 7,000 acres, is unchanged from last year. All sunflowers planted, at 330,000 acres, and oil type
varieties planted, at 300,000 acres, are both record highs. Non-oil varieties are planted on 30,000 acres. All sunflowers
harvested, at 318,000 acres, and oil type varieties, at 290,000 acres, will also be record highs, if realized. Hay acreage to be
harvested is expected to total 3.3 million acres, up 18 percent from last year. Of the total hay acreage, 950,000 acres are alfalfa
hay, up 50,000 acres from last year. Acreage of dry beans planted, at 15,000 acres, is down 3,000 acres from last year.
Harvested acreage is forecast at 14,000 acres. Cotton acreage is estimated at 44,000 acres in 2001, up 4,000 acres from last
year.
| Table 1-- KANSAS WHEAT PRODUCTION, JULY 1, 2001 | ||||||||||
| District | Acres Planted | Acres Harvested | Yield Per Acre | Production | ||||||
| 2000 | 2001 | 2000 | 2001 |
% of Prev. Yr |
2000 | 2001 | 2000 | 2001 |
% of Prev. Yr |
|
| WINTER WHEAT | - - - - - - - - 1,000 Acres - - - - - - - - | Percent | Bushels | 1,000 Bushels | Percent | |||||
| Northwest | 1,090 | 1,000 | 1,055 | 875 | 83 | 32 | 38 | 34,110 | 33,100 | 97 |
| West Central | 1,200 | 1,130 | 1,160 | 695 | 60 | 33 | 34 | 38,420 | 23,500 | 61 |
| Southwest | 1,530 | 1,540 | 1,450 | 1,195 | 82 | 36 | 38 | 52,430 | 46,000 | 88 |
| North Central | 1,290 | 1,380 | 1,225 | 1,200 | 98 | 39 | 40 | 47,345 | 48,100 | 102 |
| Central | 1,560 | 1,630 | 1,510 | 1,505 | 100 | 40 | 41 | 60,480 | 61,600 | 102 |
| South Central | 2,210 | 2,250 | 2,120 | 2,015 | 95 | 37 | 37 | 79,000 | 73,900 | 94 |
| Northeast | 200 | 230 | 187 | 210 | 112 | 44 | 41 | 8,265 | 8,600 | 104 |
| East Central | 210 | 240 | 198 | 225 | 114 | 40 | 52 | 8,000 | 11,800 | 148 |
| Southeast | 510 | 500 | 495 | 480 | 97 | 40 | 44 | 19,750 | 21,000 | 106 |
| State | 9,800 | 9,900 | 9,400 | 8,400 | 89 | 37 | 39 | 347,800 | 327,600 | 94 |
| Table 2-- CORN, SORGHUM, AND SOYBEANS, KANSAS, BY DISTRICTS, 2000-2001 | |||||||||
| District | Corn Planted | Sorghum Planted | Soybeans Planted | ||||||
| 2000 | 2001 |
% of Prev. Yr |
2000 | 2001 |
% of Prev. Yr |
2000 | 2001 |
% of Prev. Yr |
|
| 1,000 Acres | % | 1,000 Acres | % | 1,000 Acres | % | ||||
| Northwest | 621 | 560 | 90 | 180 | 210 | 117 | 53 | 60 | 113 |
| West Central | 315 | 260 | 83 | 364 | 575 | 158 | 25 | 25 | 100 |
| Southwest | 931 | 810 | 87 | 557 | 680 | 122 | 89 | 100 | 112 |
| North Central | 248 | 230 | 93 | 609 | 610 | 100 | 321 | 340 | 106 |
| Central | 128 | 140 | 109 | 562 | 575 | 102 | 213 | 225 | 106 |
| South Central | 384 | 410 | 107 | 598 | 695 | 116 | 293 | 295 | 101 |
| Northeast | 432 | 480 | 111 | 194 | 195 | 101 | 629 | 680 | 108 |
| East Central | 246 | 250 | 102 | 157 | 160 | 102 | 670 | 650 | 97 |
| Southeast | 145 | 160 | 110 | 279 | 300 | 108 | 657 | 625 | 95 |
| State | 3,450 | 3,300 | 96 | 3,500 | 4,000 | 114 | 2,950 | 3,000 | 102 |
Winter wheat production is forecast at 1.37 billion bushels. This is up 3 percent from June 1, but down 13 percent from
2000. The U.S. yield is forecast at 43.2 bushels per acre, up 2.0 bushels per acre from June 1. Hard Red Winter Wheat,
at 781 million
bushels, is up 9 percent from a month ago. White Winter production is down for the second consecutive
month, and now totals 204 million bushels. Soft Red Winter, at 380 million bushels, is down 4 percent from the last forecast
where reduced acreage more than offset higher yields.
| Table 3-- CROP PRODUCTION, JULY 1, 2000-2001 | |||||||
| Crop | Planted | Harvested | Yield Per Acre | Production | |||
| 2001 | 2000 | 2001 | 2000 | 2001 | 2000 | 2001 | |
| - - - - 1,000 Acres - - - - | Bushels | 1,000 Bushels | |||||
| KANSAS | |||||||
| Winter Wheat | 9,900 | 9,400 | 8,400 | 37 | 39 | 347,800 | 327,600 |
| Oats | 100 | 50 | 45 | 44 | 55 | 2,200 | 2,475 |
| UNITED STATES | |||||||
| All Wheat | 59,604 | 53,028 | 49,331 | 41 .9 | 40 .0 | 2,223,440 | 1,973,854 |
| Winter Wheat | 41,318 | 35,022 | 31,657 | 44 .6 | 43 .2 | 1,562,733 | 1,366,192 |
| Oats | 4,404 | 2,324 | 2,186 | 64 .2 | 60 .5 | 149,195 | 132,150 |
Non-oil type varieties were planted on 572,000 acres, down 1,000 acres from a year ago. Dry bean planted acreage is
estimated at 1.43 million acres this year, down 19 percent from last year and 30 percent below two years ago.
| Table 4-- CROP ACREAGE, 2000- 2001 | ||||||||
| Crop | Kansas | United States | ||||||
| Planted | Harvested | Planted | Harvested | |||||
| 2000 | 2001 | 2000 | 2001 | 2000 | 2001 | 2000 | 2001 | |
|
|
||||||||
| Corn 1/ | 3,450 | 3,300 | 3,200 | 3,100 | 79,545 | 76,109 | 72,732 | 69,291 |
| Sorghum 1/ | 3,500 | 4,000 | 3,200 | 3,750 | 9,195 | 9,747 | 7,723 | 8,857 |
| Soybeans | 2,950 | 3,000 | 2,500 | 2,900 | 74,496 | 75,416 | 72,718 | 74,337 |
| Oats | 110 | 100 | 50 | 45 | 4,477 | 4,404 | 2,324 | 2,186 |
| Barley | 8 | 7 | 7 | 7 | 5,844 | 5,088 | 5,201 | 4,514 |
| Dry Edible Beans | 18 .0 | 15 .0 | 16 .0 | 14 .0 | 1,756 .2 | 1,426 .2 | 1,606 .4 | 1,333 .5 |
| Sunflowers | 220 | 330 | 204 | 318 | 2,792 | 2,750 | 2,629 | 2,660 |
| All Hay | - | - | 2,800 | 3,300 | - | - | 59,854 | 63,833 |
| Alfalfa | - | - | 900 | 950 | - | - | 23,077 | 23,750 |
| Other Hay | - | - | 1,900 | 2,350 | - | - | 36,777 | 40,083 |
| Cotton | 40 .0 | 44 .0 | 37 .0 | 2/ | 15,517 .2 | 16,289 .0 | 13,053 .0 | 2/ |
Kansas wheat stocks in all positions totaled 154.2 million bushels on June 1, 9 percent below last June. Wheat stored at
off-farm locations (mills, elevators, warehouses, and processors) totaled 146.2 million bushels, which accounted for 95
percent of the total grain stocks.
Sorghum grain in all positions totaled 34.8 million bushels, 33 percent below last year's level. Off-farm stocks accounted
for 26.8 million bushels and on-farm stocks for 8.0 million bushels.
Kansas corn stocks in all locations, at 111.0 million bushels, were 4 percent higher than last June. Off-farm stocks were
78.0 million bushels, which accounted for 70 percent of the total corn stocks. On-farm stocks, at 33.0 million bushels, are
unchanged from last June.
Off-farm oat stocks were 329,000 bushels, down 47 percent from last June.
Kansas soybeans in all locations totaled 18.3 million bushels, a 30 percent decrease from June 2000. Off-farm stocks, at
13.3 million bushels, were down 30 percent from last year and accounted for 73 percent of the total soybean stocks. On-farm
stocks totaled 5.0 million bushels, down 2 million bushels from the previous year.
| Table 5-- STOCKS OF GRAIN - JUNE 1, 2001, WITH COMPARISONS | |||||||
| Grain | Position | Kansas | United States | ||||
|
June 1, 2000 |
March 1, 2001 |
June 1, 2001 |
June 1, 2000 |
March 1, 2001 |
June 1, 2001 |
||
| 1,000 Bushels | |||||||
| All Wheat | On-Farms | 7,000 | 21,000 | 8,000 | 226,780 | 384,750 | 197,270 |
| Off-Farms 1/ | 161,899 | 196,771 | 146,183 | 722,968 | 953,648 | 675,855 | |
| TOTAL | 168,899 | 217,771 | 154,183 | 949,748 | 1,338,398 | 873,125 | |
| Sorghum Grain | On-Farms | 13,000 | 19,000 | 8,000 | 27,300 | 40,100 | 17,500 |
| Off-Farms 1/ | 39,160 | 62,382 | 26,798 | 99,606 | 127,027 | 57,112 | |
| TOTAL | 52,160 | 81,382 | 34,798 | 126,906 | 167,127 | 74,612 | |
| Corn | On-Farms | 33,000 | 60,000 | 33,000 | 2,029,800 | 3,600,000 | 2,230,800 |
| Off-Farms 1/ | 74,059 | 128,310 | 78,010 | 1,556,138 | 2,442,999 | 1,693,408 | |
| TOTAL | 107,059 | 188,310 | 111,010 | 3,585,938 | 6,042,999 | 3,924,208 | |
| Oats | On-Farms | * | * | * | 36,000 | 55,800 | 32,050 |
| Off-Farms 1/ | 624 | 444 | 329 | 40,031 | 54,127 | 40,577 | |
| TOTAL | * | * | * | 76,031 | 109,927 | 72,627 | |
| Barley | On-Farms | * | * | * | 25,400 | 58,600 | 28,850 |
| Off-Farms 1/ | 25 | 18 | 16 | 85,924 | 103,544 | 77,409 | |
| TOTAL | * | * | * | 111,324 | 162,144 | 106,259 | |
| Soybeans | On-Farms | 7,000 | 9,000 | 5,000 | 370,000 | 780,000 | 365,000 |
| Off-Farms 1/ | 19,054 | 26,219 | 13,334 | 404,425 | 623,908 | 343,320 | |
| TOTAL | 26,054 | 35,219 | 18,334 | 774,425 | 1,403,908 | 708,320 | |
| 1/ Includes stocks at mills, elevators, warehouses, terminals, & processors. * Data not published to avoid disclosure of individual operations. | |||||||
Some of the figures in the USDA's July wheat crop estimate were larger than expected. At 1,566 million bushels, the
winter wheat figure was 16 million bushels above the average of the trade's pre-release guesstimates and 3.4
percent above the June figure. While 3.4 percent may seem like a large increase, on average, there is a 2 percent
increase in winter wheat production between the July and the June reports.
Wheat export activity is the lowest on record for this date. As of June 28, only 208 million bushels of wheat had been
committed for export (including an estimated 30 million bushels of "food aid" donations which has either been shipped
or has been contracted for by the CCC but not yet shipped). On average, 27 percent of annual wheat grain exports
are booked by this date.
Despite the low level of export commitments, the USDA raised its projection for exports to 1,050 million bushels, up
50 million bushels from their June projection. Approximately 1,010 million bushels of that export projection consists
of wheat as grain. Using the average ratio of July commitments/annual exports, we should have 273 million bushels
sold by now. Presumably, the USDA increased its projection for U.S. exports because they lowered their projection
for wheat production of three of our principle export competitors (the EU, Canada, and Australia) by 158 million
bushels.
The USDA reduced their estimate of wheat feeding by 25 million bushels. Some decrease in wheat feeding had been
expected due to the high premium that wheat had over feed grains. The USDA raised its estimate of ending stocks by
25 million bushels and they lowered their price forecast by $.05. The midpoint of the range of the USDA's forecast for
wheat now stands at $3.00, $.38 higher than last year's price.
Seasonally, KCBT wheat futures prices tend to bottom in June. The prospect for a further reduction in the Canadian and Australian wheat crops must be offset by the larger than expected U.S. winter wheat crop, the generally good prospects for the U.S. spring wheat crop, and the lackluster performance of U.S. exports to date. However, with cash prices at or near loan level, producers with on-farm storage face relatively low risks if they continue to store their grain under loan. However, producers who must place their grain in commercial storage (and therefore incur higher storage costs), may want to consider selling their grain and replacing their ownership by purchasing at or near-to-the- money December of March call options.
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