Return to the KASS Homepage

CROPS

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

Released: July 11, 2003
Volume 03, No. 7


Text Box

INCLUDED
IN THIS
ISSUE

WHEAT
PRODUCTION

CROP
ACREAGE

GRAIN
STOCKS

MARKET
IMPLICATION

S



Kansas Wheat Production Up from June Forecast

Wheat production in Kansas for 2003 is forecast at 475.3 million bushels. This is the third highest production on record. The current forecast is up 11 percent from June 1 and 78 percent above last year's production. Harvested acres are expected to total 9.7 million, unchanged from June 1 but up 1.6 million acres from last year. Yield is expected to average 49.0 bushels per acre, up 5 bushels from the June 1 forecast and 16 bushels above last year's yield of 33.0. This ties with the record yield set in 1998. As of July 6, wheat harvest was 92 percent complete, 6 points behind last year's progress of 98 percent complete but 3 points ahead of the average.

Kansas growers planted 19.6 million acres to the four major crops (wheat, sorghum, corn, and soybeans), up 1 percent from 2002. Wheat seeded last fall totaled 10.3 million acres, up 7 percent (700,000 acres) from last year.

Sorghum acreage planted and to be planted, at 3.7 million acres, is down 3 percent from last year. Kansas ranks first in the Nation in sorghum acreage. The acreage intended for harvest as grain, at 3.4 million acres, is up 13 percent from last year.

Corn planted acreage, at 2.9 million acres, is 11 percent below last year's planted acres. Kansas farmers planted 47 percent of their corn acreage with varieties developed using biotechnology. Twenty-five percent of the acreage was planted with insect resistant only varieties containing bacillus thuringiensis (Bt) and 17 percent of the acreage with herbicide resistant varieties developed using biotechnology. Stacked gene varieties, those containing both insect and herbicide resistance, were planted on 5 percent of the corn acreage. Acreage expected to be harvested for grain is 2.7 million acres, up 8 percent from last year.

Soybean plantings are expected to total 2.7 million acres, down 50,000 acres from a year ago. Producers planted 87 percent of the soybean acreage to herbicide resistant varieties in 2003. Expected Kansas acreage for harvest, at 2.6 million acres, is 2 percent above last year.

Oats planted in 2003, at 150,000 acres, is 7 percent above last year. Oats expected to be harvested for grain, at 90,000 acres, is up 30,000 acres from the previous year. Yield is expected to average 54.0 bushels per acre. Oat production is forecast at 4.9 million bushels. Barley planted acreage, at 9,000 acres, increased 1,000 acres from last year. Expected acreage for harvest, at 8,000 acres, is also 1,000 acres above last year. All sunflowers planted, at 180,000 acres, are down 16 percent from last year. Oil type varieties planted are at 160,000 acres, while non-oil varieties are planted on 20,000 acres. All sunflowers harvested are expected to total 169,000 acres, with oil type varieties accounting for 150,000 harvested acres. Hay acreage to be harvested is expected to total 3.1 million acres, down 5 percent from last year. Of the total hay acreage, 950,000 acres are alfalfa hay, unchanged from last year. Acreage of dry beans planted, at 12,000 acres, is down 6,000 acres from last year while harvested acreage is forecast at 11,000 acres. Cotton acreage is estimated at 125,000 planted acres in 2003, up 45,000 acres from last year.

Kansas Wheat Production, By District, July 1, 2003 1/
District Acres Planted Acres Harvested Yield Per Acre Production
2002 2003 2002 2003 % of
Prev. Yr
2002 2003 2002 2003 % of
Prev. Yr
WINTER WHEAT - - - - - - - - 1,000 Acres - - - - - - - - Percent Bushels 1,000 Bushels Percent
Northwest 1,060 1,060 920 985 107 29 40 26,440 39,200 148
West Central 1,200 1,240 885 1,175 133 27 41 23,865 47,600 199
Southwest 1,545 1,750 1,010 1,605 159 27 36 27,215 58,500 215
North Central 1,230 1,390 1,120 1,315 117 38 58 42,885 76,200 178
Central 1,460 1,500 1,400 1,440 103 37 60 51,220 85,800 168
South Central 2,195 2,340 1,900 2,185 115 33 52 61,755 112,900 183
Northeast 150 200 145 195 134 49 63 7,165 12,300 172
East Central 224 270 215 265 123 40 57 8,605 15,000 174
Southeast 536 550 505 535 106 36 52 18,150 27,800 153
    State 9,600 10,300 8,100 9,700 120 33 49 267,300 475,300 178
1/ Funding for district level wheat data supplied by the Kansas Wheat Commission.

Corn and Soybeans, Kansas, by Districts, 2002-2003
District Corn Planted Soybeans Planted
2002 2003 % of
Prev. Yr
2002 2003 % of
Prev. Yr
1,000 Acres % 1,000 Acres %
Northwest 500 420 84 65 70 108
West Central 238 230 97 24 30 125
Southwest 774 540 70 77 100 130
North Central 224 190 85 306 315 103
Central 133 120 90 202 175 87
South Central 358 370 103 229 225 98
Northeast 520 480 92 612 630 103
East Central 283 290 102 641 625 98
Southeast 220 260 118 594 530 89
    State 3,250 2,900 89 2,750 2,700 98

United States Winter Wheat Crop

Winter wheat production is forecast at 1.72 billion bushels. This is up 6 percent from June 1 and 50 percent above 2002. Acres for harvest as grain are forecast at 36.5 million. up 23 percent from 2002. The U.S. yield is forecast at 47.0 bushels per acre, up 2.4 bushels per acre from June 1. Hard Red Winter Wheat, at 1.09 billion bu shels, is up 9 percent from a month ago. White Winter production is up 2 percent this month and now totals 259 million bushels. Soft Red Winter, at 366 million bushels, is down 1 percent from the last forecast.

Crop Production, July 1, 2002-2003
Crop Planted Harvested Yield Per Acre Production
2003 2002 2003 2002 2003 2002 2003
- - - - 1,000 Acres - - - - Bushels 1,000 Bushels
KANSAS
Winter Wheat 10,300 8,100 9,700 33 49 267,300 475,300
Oats 150 60 90 52 54 3,120 4,860
UNITED STATES
All Wheat 60,940 45,817 52,677 35 .3 43 .9 1,616,441 2,310,911
Winter Wheat 44,349 29,651 36,491 38 .5 47 .0 1,142,802 1,715,912
Oats 4,676 2,098 2,286 56 .8 64 .7 119,132 147,894


United States Crop Acreage

Sorghum planted for all purposes is estimated at 9.48 million acres, down 1 percent from 2002. Sorghum harvested for grain is estimated at 8.12 million acres, up 11 percent from last year. Corn planted for all purposes is estimated at 79.1 million acres, virtually unchanged from 2002 but up 4 percent from 2001. Growers expect to harvest 72.0 million acres for grain, up 4 percent from 2002. Soybean growers planted or intend to plant 73.7 million acres, down 105,000 acres from last year. Area to be harvested is estimated at 72.7 million acres, up 1 percent from 2002. Hay growers expect to harvest 64.4 million acres of all hay in 2003, down slightly from 2002. The area of alfalfa and alfalfa mixtures cut for hay is estimated at 23.5 million acres, up 2 percent from last year. All other hay acreage is estimated at 40.8 million acres, down 1 percent from last year. Sunflower planted area is estimated at 2.32 million acres, down 10 percent from last year. Harvested area is estimated at 2.26 million acres, up 2 percent from 2002. Oil type varieties comprised 1.98 million acres this year, 7 percent below 2002.

Non-oil type varieties were planted on 348,000 acres, down 112,000 acres from a year ago. Dry bean planted acreage is estimated at 1.51 million acres this year, down 21 percent from last year but 5 percent above two years ago.

Crop Acreage, 2002- 2003
Crop Kansas United States
Planted Harvested Planted Harvested
2002 2003 2002 2003 2002 2003 2002 2003
- - - - - - - - - - - - - - - - - - 1,000 Acres - - - - - - - - - - - - - - - - - -
Corn 1/ 3,250 2,900 2,500 2,700 79,054 79,066 69,313 71,985
Sorghum 1/ 3,800 3,700 3,000 3,400 9,580 9,477 7,299 8,121
Soybeans 2,750 2,700 2,540 2,600 73,758 73,653 72,160 72,681
Oats 1/ 140 150 60 90 5,005 4,676 2,098 2,286
Barley 1/ 8 9 7 8 5,073 5,461 4,135 4,899
Dry Edible Beans 18 .0 12 .0 14 .5 11 .0 1,922 .1 1,511 .7 1,726 .9 1,439 .7
Sunflowers 215 180 168 169 2,585 2,324 2,205 2,255
All Hay - - 3,250 3,100 - - 64,497 64,379
    Alfalfa - - 950 950 - - 23,135 23,541
    Other Hay - - 2,300 2,150 - - 41,362 40,838
Cotton, All 80 .0 125 .0 68 .0 2/ 13,957 .9 13,924 .0 12,426 .6 2/
Summer Potatoes 3 .0 2 .8 2 .9 2 .7 62 .2 65 .1 59 .1 63 .1
1/ Harvested area is for grain. 2/ No estimate currently available.

Kansas Grain Stocks

Kansas wheat stocks in all positions total 53.6 million bushels on June 1, 56 percent below last June. Wheat stored at off-farm locations (mills, elevators, warehouses, and processors) totaled 49.1 million bushels, which accounts for 92 percent of the total grain stocks.

Sorghum grain in all positions totals 40.1 million bushels, 20 percent below last year's level. Off-farm stocks accounted for 34.1 million bushels and on-farm stocks for 6.0 million bushels.

Kansas corn stocks in all locations, at 76.8 million bushels, are 27 percent lower than last June. Off-farm stocks are 50.8 million bushels, which account for 66 percent of the total corn stocks. On-farm stocks, at 26.0 million bushels, are down 1.0 million bushels from last June.

Kansas soybeans in all locations total 13.3 million bushels, a 35 percent decrease from June 2002. Off-farm stocks, at 9.8 million bushels, are down 35 percent from last year and account for 74 percent of the total soybean stocks. On-farm stocks total 3.5 million bushels, down 2.0 million bushels from the previous year.

Off-farm oat stocks are 349,000 bushels, up 57 percent from last June.

Off-farm barley stocks, at 13,000 bushels, are down 58 percent, or 18,000 bushels, from a year ago.

Stocks of Grain - June 1, 2003, with Comparisons
Grain Position Kansas United States
June 1,
2002
March 1,
2003
June 1,
2003
June 1,
2002
March 1,
2003
June 1,
2003
1,000 Bushels
All Wheat On-Farms 13,000 13,000 4,500 216,830 236,300 132,110
Off-Farms 1/ 108,625 116,811 49,097 560,282 670,333 359,611
    TOTAL 121,625 129,811 53,597 777,112 906,633 491,721
Sorghum Grain On-Farms 9,000 16,000 6,000 17,300 27,500 11,150
Off-Farms 1/ 41,136 69,902 34,137 88,178 135,423 70,744
    TOTAL 50,136 85,902 40,137 105,478 162,923 81,894
Corn On-Farms 27,000 50,000 26,000 2,020,600 2,940,000 1,620,200
Off-Farms 1/ 77,824 103,549 50,781 1,576,290 2,191,751 1,364,476
    TOTAL 104,824 153,549 76,781 3,596,890 5,131,751 2,984,676
Oats On-Farms * * * 28,650 35,000 20,600
Off-Farms 1/ 222 730 349 34,552 47,879 29,201
    TOTAL * * * 63,202 82,879 49,801
Barley On-Farms * * * 23,210 36,730 14,860
Off-Farms 1/ 31 59 13 69,631 86,710 54,460
    TOTAL * * * 92,841 123,440 69,320
Soybeans On-Farms 5,500 11,000 3,500 301,200 635,500 272,500
Off-Farms 1/ 14,950 23,014 9,750 383,721 565,528 329,830
    TOTAL 20,450 34,014 13,250 684,921 1,201,028 602,330
1/ Includes stocks at mills, elevators, warehouses, terminals, & processors. * Data not published to avoid disclosure of individual operations.

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

Many figures in the USDA July wheat crop estimate were larger than expected. At 1,716 million bushels, the winter wheat figure was 44 million bushels above the average of the trade's pre-release guesstimates and 5.5 percent above the June forecast.

Since the crop survey was conducted (the first week of July), winter wheat crop conditions have changed little. At the same time, harvest reports have generally been higher than expected. Consequently, it seems likely that the final winter wheat crop could be a bit larger than the July figure but probably not by more than 15 to 30 million bushels.

Export activity has improved over last year. As of July 3, 244 million bushels of wheat had been committed for export (including an estimate of some 17 million bushels of "food aid" donations). As expected, the USDA raised the projection for exports to 975 million bushels, an increase of 25 million bushels from the June projection. Approximately 945 million bushels of the export projection consist of wheat as grain. Using the average ratio of July commitments/annual exports, we should have 246 million bushels sold by now. Therefore, the pace of commitments is precisely on schedule to meet the USDA's export projection.

The USDA left the estimate of wheat feeding unchanged at 175 million bushels. Some increase in wheat feeding had been expected due to the larger supplies of wheat. The estimate of ending stocks increased by 134 million bushels and the price forecast was lowered by 10 cents. The midpoint of the range of the forecast for wheat price now stands at $3.10, 46 cents less than last year's price.

Seasonally, wheat prices tend to bottom in July. Although winter wheat harvest is approaching 75 percent completed (by July 13) the prospect for a slightly larger U.S. spring wheat crop (and possibly a better than expected Canadian crop), combined with only a modest improvement in the outlook for U.S. wheat exports, could push the markets to new lows. In addition, weakness in the feed grain and oilseed markets, makes a strong fundamental case for lower wheat prices.

The wheat market may be within $.10-$.15 of its seasonal low. If exports continue to improve, along with a slackening of harvest pressure, a fundamental basis for the beginning of a post-harvest rally exists. Lower world wheat production, possibly the tightest world ending stocks in over 40 years, and any unexpected problems with the S. Hemisphere's wheat crop could also provide support to the market. Farmers, who sell their grain and take the LDP, may want to consider purchasing at-the- money December or March call options (to replace their ownership).


Dave Ranek & Quentin Wearne, Agricultural Statisticians
Eldon J. Thiessen, State Statistician
Eddie Wells, Deputy State Statistician

Return to the KASS Homepage