Corn Crop Planting Progress

According to the USDA's latest Crop Progress report, released today, 62 percent of the corn has been planted. This is less the same time last year when we were at 70 percent and less than the five-year average of 85 percent. For Kentucky, 45 percent of the corn has been planted compared to 39 percent this time last year and to 89 percent for the five-year average.
Planting delays due to excess moisture have helped push corn prices higher. Although producers are busy trying to get the crops into the ground, the current period, say the next two weeks, offers a great time to price some 09 corn for either December, March, or May delivery. Currently, the futures market is offering a 10 cent premium (the carry) for holding grain from December ($4.42) to March ($4.52) and 17 cent premium from December to May ($4.59). This futures carry along with potentially some positive basis change from December to March or May may make storage with fixing the futures price (short either the March or May) a good choice. If storage is not an option a short futures contract for December delivery would be the next best option. By Cory G. Walters, cgwalters@uky.edu