Food Business News - June 7, 2011 - (Page 52)

Market Insight Wet weather muddies corn outlook Corn acres dropping; crop needs ideal weather to rebound Continued from Page 1 six major growing states compared with 95% as the 200610 average for the date, the U.S. Department of Agriculture said in its latest Crop Progress report. Cash prices for durum, also mostly a spring-grown crop, surged $2 to $13.70 a bu in Minneapolis two weeks ago for the same reasons as hard red spring wheat. The price was the highest since September 2008. Canadian milling durum jumped $2.75, to the equivalent of $15 a bu in Thunder Bay, Ont., the past two weeks. Futures prices for most other grains and oilseeds, including Kansas City hard red winter wheat and Chicago soft red winter wheat, soybeans, rice and oats, peaked in February, most at the highest levels since 2008. The exception was corn futures, often the market leader, which set an all-time high April 11 of $7.88¾ a bu basis the July contract. Farmers across the Corn Belt have been planting corn earlier and earlier for many years. Last year was one of the earliest on record, followed by nearly ideal growing and harvesting conditions. In its March 31 Prospective Plantings report the U.S.D.A. said farmers indicated they would plant 92.2 million acres of corn, up 4 million acres, or 4.5%, from 2010. Acres were attracted to corn as strong demand from the export, feed and especially ethanol sectors pulled old crop stocks to the lowest level in 15 years. Corn planting in the 18 major growing states was 86% weather-related losses. That would take planted area down to about 90.35 million acres. Using U.S.D.A.’s abandonment percentage of 7.7% of planted area, harvested area then would total about 83.4 million acres, up 2.5% from 81.4 million acres in 2010. And, using the U.S.D.A. projected yield of 158.7 bus an acre, 2011 U.S. corn production U.S.D.A. numbers for slow progress in Ohio at 19% planted as of May 29 (93% as the 200610 average), Indiana at 59% (87%), Michigan at 67% (92%), Wisconsin at 80% (92% average), Minnesota at 88% (98%) and North Dakota at 74% (91%). Also important is the effect of late planting on yield loss, with yield estimated to drop about 1 bu a day after optimum planting dates, which vary by location. Mr. Salmon estimated the average U.S. corn yield has dropped 2 bus an acre from the U.S.D.A.’s projection. But, he also noted yield still has time to recover, although quality may suffer. “Right behind acreage loss the quality issue may be bigger for corn than the yield issue,” Mr. Salmon said. “A cool, moist growing season is negative for late planted corn.” In 2009 a considerable amount of late planted corn never matured or dried down sufficiently due to a cool, moist growing season. Late planting also will push the key pollination period for corn further into the hotter, drier days of summer, but much of that may be offset by a cool, moist growing season, Mr. Salmon suggested. The trade will get planted area numbers in the U.S.D.A.’s June 30 Acreage report, the first survey-based production estimate for spring wheat on July 12 and for corn and soybeans on Aug. 11. FBN North Dakota 2011 2006-10 average 74% 91% 86% Minnesota 2011 88% 2006-10 average 98% 2011 80% 2006-10 average 92% Iowa Corn per cent planted acreage (as of May 29, 2011) Wisconsin Michigan 2011 67% 2006-10 average 92% South Dakota 92% 97% 98% 2011 2006-10 average Ohio Nebraska 2011 2006-10 average 2011 99% Indiana 2011 19% Illinois 2011 2006-10 2006-10 % 2011 94% 59% average average 98 06-10 93% 2006-10 20 erage average av87% 93% Source: U.S. Department of Agriculture rsterk@sosland.com RON STERK l d f May 29 the completed as of M 29, h U.S.D.A. said, compared with 95% as the 2006-10 average for the date, but cool and excessively wet conditions in the Upper Midwest and eastern Corn Belt have pushed corn planting back several weeks in some states. A recent wire service poll showed analysts forecast as many as 1.85 million acres of corn may go unplanted or be switched to other crops because of delayed planting or would be 13,234 million bus, 121 million bus less than the U.S.D.A.’s projected 2011-12 total use of 13,355 million bus. Use is expected to exceed production by an estimated 1,003 million bus in this year (2010-11), but beginning stocks were 1,708 million bus compared with a projected 730 million bus at the start of 201112 on Sept. 1, 2011. “There’s going to be more than a 2% decline in corn acres,” Mr. Salmon suggested, noting 52 FOODBUSINESS NEWS ® June 7, 2011

Table of Contents for the Digital Edition of Food Business News - June 7, 2011

Food Business News - June 7, 2011
House bill cuts food safety funding
Enhancing water’s value
Wet weather muddies corn outlook
Contents
Web Contents
Editorial - Quest for ‘whole truth’ on food prices in France
MyPlate steps up in simple fashion
Breaking down MyPlate by food groups
Lawmakers look to halt sale of Lazy Cakes
McCormick to enter joint venture in India
Cal Pacifi c acquires SunOpta frozen fruit assets
Cargill Kitchen Solutions expanding in Iowa
F.M.I. hires new v.p. of food safety programs
Sealed Air to acquire Diversey for $4.3 billion
AdvancePierre Foods buys Barber Foods
Cargill acquires German chocolate business
Calavo to buy Renaissance Food Group
U.S. Foodservice acquires Great Western Meats
Clear sailing for Hain
Seneca Foods earnings down sharply in 2011
April red meat production down 4% from year ago
Sbarro now exploring alternatives to bankruptcy plan
Sherman Miller promoted to c.o.o. at Cal-Maine Foods
Nestle Health Science to acquire pharmaceutical maker
Emerging markets propel Heinz’s fi scal 2011 earnings
U.S.D.A. lowers cooking temp for some meat cuts
Campbell Soup focusing on volume sales, brand building
Buyout fi rm to acquire California Pizza Kitchen
Sanderson Farms suffers second-quarter loss
Wet weather muddies corn outlook
House bill cuts food safety funding
House panel seeks reduction in W.I.C. funding in fiscal 2012
Seeking middle market opportunities
Clear and concise
Ingredient solutions help keep it simple
Identifying natural partners for stevia
$tevia $upplier$ $eek profi t$ through international growth
Brain health for baby boomers
BEVERAGE BUSINESS NEWS
Bottled water volume, market share grew in 2010
Study recommends children should avoid energy, sports drinks
V8 introduces energy beverages
Smucker, Starbucks raising coffee prices
Nestle launches Aguas Frescas bottled beverage
Jamba introduces coconut water-based beverages
Enhancing water’s value
Gluten-free grains momentum
Balance Bar adds Café line
Pasta Prima launches two ravioli lines
Land O’Frost debuts Wrap Kit
Franz introduces artisan bread
Kraft launches Newtons Fruit Thins
Farley’s & Sathers adds ‘Splashers’
Häagen-Dazs introduces 2011 flavors
Mars updates Kudos granola bar line
INGREDIENT MARKET TRENDS
Lifting of Russian export ban pressures world wheat market
Ingredient Markets
Packaging formats focus on convenience
Technology enables ultrasonic sealing
Ingredient’s small size aids in salt reduction
AKFP now offers arrowroot starch, pea starch
Tate & Lyle to resume U.S. sucralose production
Non-dairy ingredients achieve pareve certifi cation
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - June 7, 2011

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