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CROPS

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

Released: July 11, 2001
Volume 01, No. 7

WHEAT PRODUCTION UP FROM JUNE FORECAST

Text Box

INCLUDED
IN THIS
ISSUE

WHEAT
PRODUCTION

CROP
ACREAGE

GRAIN
STOCKS

MARKET

IMPLICATION S


Wheat production in Kansas for 2001 is forecast at 327.6 million bushels (see table 1 for estimates by district). The current forecast is up 15 percent from June 1, but 6 percent below last year's production. Harvested acres are expected to total 8.4 million, unchanged from June 1 but down 1 million acres from last year. Yield is expected to average 39.0 bushels per acre, up 5 bushels from the June 1 forecast and 2 bushels above last year's yield of 37.0. As of July 1, wheat harvest was 78 percent complete, behind last year's progress but well ahead of the average.

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


U.S. WINTER WHEAT CROP

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


UNITED STATES CROP ACREAGE

Sorghum planted for all purposes is estimated at 9.75 million acres, up 6 percent from 2000 and represents a small rebound from last year's record low planted acreage. Sorghum harvested for grain is estimated at 8.86 million acres, up 15 percent from last year. Corn planted for all purposes is estimated at 76.1 million acres, down 4 percent from last year. Growers expect to harvest 69.3 million acres for grain, down 5 percent from 2000. Soybean growers planted or intend to plant 75.4 million acres, 1 percent above last year's acreage. Area to be harvested is estimated at 74.3 million acres, up 2 percent from 2000. If realized, this will be the largest planted and harvested acreage on record. Hay growers expect to harvest 63.8 million acres of hay in 2001, up 7 percent from the 59.9 million acres harvested the previous year. This is the largest harvested acreage of all hay since 1988. The area of alfalfa and alfalfa mixtures cut for hay is estimated at 23.8 million acres, up 3 percent from 2000, while all other hay acreage is estimated at 40.1 million acres, 9 percent above last year. Sunflower planted area is estimated at 2.75 million acres, down 2 percent from last year. Harvested area is estimated at 2.66 million acres, up 1 percent from 2000. Oil type varieties comprised 2.18 million acres this year, 2 percent below 2000.

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
- - - - - - - - - - - - - - - - - - 1,000 Acres - - - - - - - - - - - - - - - - - -
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/
1/ Harvested area is for grain. 2/ No estimate currently available.

KANSAS GRAIN STOCKS

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.
Dave Ranek & Mike Miller, Agricultural Statisticians


Text Box

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

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.


Eldon J. Thiessen, State Statistician
Eddie Wells, Deputy State Statistician

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