US farmers continue to face delays planting crops, with latest US Department of Agriculture (USDA) data showing that US corn was only 14% planted compared to 42% at this stage last year, making the planting rate in 2022 one of the slowest ever seen.
Spring wheat planting is also trailing the pace of 2021, at 19%, according to the USDA crop progress report, released on May 2. Soybeans were showing delays as well, with 8% planted, down from the 22% reported planted at the same point, the year prior.
“Cold and wet conditions are forecast to continue to cause delays as farmers race to plant crops amidst high prices,” found the CRM Agri team in a review of the data.
US winter wheat crop condition remain in poor conditions, with only 27% rated as good to excellent vs 48% last year, said the UK analysts.
Ukraine, Russian crops
Ukraine's agricultural ministry data, according to the Ukraine Grain Association, highlighted that as of May 2, Ukrainian farmers have planted 4.7 million hectares of spring crops, an increase of 6% over the previous week, however just 30% of 2021. “Farmers continue to face issues with access to inputs and seeds, as well as the risk of drilling crops in the midst of a war,” commented the CRM Agri market specialists.
Meanwhile, an ADHB outlook noted that Russian soil moisture is reportedly good and is set to benefit the country’s record 2022 wheat crop: “SovEcon forecast this crop to be 87.4Mt, with 2022/23 wheat exports pegged at 41.0Mt. Currently, Russia is working their way around sanctions and picking up a significant amount of global demand.”
Looking to other events, Chicago soybean prices dipped to a three-week low on Monday, with the latest lockdown measures in major cities in China perceived to weaken US soybean export opportunities, reads the ADHB note.
Energy markets continue to look supported, as the EU prepare to impose an oil embargo on Russia, as per the CRM Agri outlook.