Cornbelt Update is a weekly summary of news from Extension, government, and other attributable sources, focused on marketing, farm management, and other issues that are of interest to Midwestern farm owners and operators.

USDA cut the soybean carryout to 110 mil. bu. at the end of August, but IL ag economist Darrel Good says price rationing will ensure a pipeline supply. “Prices will stay high or continue to rise until there is convincing evidence that consumption has slowed sufficiently to maintain at least a pipeline supply of old crop soybeans.” He says move old crop beans once the market is satisfied that sufficient rationing has occurred.

We will have enough beans, but Good says China has taken 629 mil. bu. so far and that is 188 mil. more than last year. Total soybean exports are projected to be 1.250 bil. thanks to the droughty Argentine harvest and the slack demand by the domestic crush. But USDA says the crush is picking up and may surpass 2008 stats by 5 mil. bu. Read his newsletter.

Darrel Good wonders if consumption is beginning to slow, saying there is evidence:
1) The pace of exports has dropped for two weeks and sales have been cancelled.
2) Higher prices for DDGS indicate livestock feeders are buying it instead of bean meal.
3) Exports of meal and oil are slightly above the pace projected by USDA.

USDA’s language in the June Supply-Demand report caught the eye of Kansas State’s Mike Woolverton, because the acreage estimates were “highly tentative.” He says USDA used the Planting Intentions report acreage, which will change. “That will certainly raise the level of interest in USDA’s June 30th Acreage report to an all time high. The USDA June domestic corn production projection may turn out to be a best case scenario.”

Woolverton says if planted corn acreage falls by a million acres or more in the June 30th report, carryover would fall below 1 bil. bu. And he adds, “If summer weather phenomena lowers national average yield even more, as some now predict, the corn supply/demand fundamentals will become very tight for this marketing year; and next, unless corn acreage expands dramatically next spring.”

Woolverton is concerned about the 110 mil. bu. soybean carryover this year and USDA’s projected 210 mil. bu. carryover next year, which he says is a 23 day supply. He says higher acreage of 79 million, but lower yield by 39.6 bu., which was last year’s national average, would result in a 100 mil. bu. cut in production and 22 day supply. Read more.

Biofuel demand has also started to rebound with higher fuel prices, says IA Extension’s Chad Hart. “Since the first of the year, corn and ethanol prices are up about 5%, soybean prices are up over 20% and gasoline prices are up over 70%. Gasoline prices have increased enough to overtake ethanol prices and the economics of blending again favor ethanol.” He expects more breathing room for ethanol prices and increased margins.

Your ACRE decision needs to be made by Aug. 14, says OSU economist Carl Zulauf. "Market events can happen between now and August to substantively impact the ACRE decision for corn and soybean producers and landlords. We could see a major increase in crop revenue, possibly due to higher prices resulting from a drought that would clearly reduce the incentive to participate in ACRE. On the other hand, we could see a big decrease in revenue between now and August that would clearly increase the incentive to participate in ACRE." He says prepare paperwork now, and file it just before Aug. 14.

Expect more hoop jumping for farmers needing credit says IL ag economist Bruce Sherrick, “In the end, there will likely be increased public disclosure and improved informational systems supporting loans and other forms of capital transfer, and there will be likely be improved risk-pricing (more responsive loan rates to borrower risk), but there is not likely to be a fundamental rationing of credit in agriculture as there may be in some other worse-hit sectors.” Sherrick says we are not revisiting the 1980’s at this time.

Agriculture entered “the crisis” in good shape, says Sherrick, “Compared to most other sectors, agriculture has exceptionally low leverage. USDA data indicate that the overall ag debt-to-asset ratio was only 9.1% as of 2008. Further, 2008 was a year of record agricultural income, following several other years of relatively high income levels. Further buffering the impacts, land values represent over 85% of the assets in the sector.”

Prices for diesel fuel are 52% less than year ago levels according to Kansas State’s Kevin Dhuyvetter, based on NYMEX futures prices. And he says that will be about the price differential through the balance of the summer. Harvest season will see diesel prices 40% under late 2008 prices, but December prices will be 13% over 2008.

How late can corn be planted? IL crop specialist Emerson Nafziger says, “Based on accumulated data, corn yield approaches 50% of its maximum yield when planting is delayed to June 15-20. But past data are so variable that such predictions are likely to be inaccurate for any given year. Most fields with stands above 20,000 to 25,000 should probably be kept now, given the severe penalty for planting so late.” Read about seedling losses in his latest newsletter. .

Corn rootworms began hatching in the Central Cornbelt about June 1, and will soon be at the 50% point, based on degree-day accumulations. For the balance of June, IL bug specialist Mike Gray says damage to late planted corn may be more severe, due to the overall smaller root system exposed to corn rootworm feeding. Scout your fields.

European corn borers may have a challenge surviving their first generation, due to delays in corn planting, says IL entomologist Mike Gray, and he says the prevalence of Bt fields will help drive survivors down even further. Gray says Bt refuges could be vulnerable to significant infestations, so scout them for decisions on spraying.

Soybean aphids have appeared in Michigan, but the intensity of the population is not yet determined, nor the density of their primary predators, the seven spotted lady beetle and the multicolored Asian lady beetle. Canadian researchers have found that adult seven spotted lady beetles consumed between 166 and 277 soybean aphids per day. The multicolored Asian lady beetles ate between 73 and 244 aphids per day. Hungry devils!

Wet soils prevented some cornfields from pre-emergent weed control, so the post-emergent herbicides will have to be the weapons of choice for many farmers. However, each has a restriction on the maximum stage and size of corn that it can be used. IL weed specialist Aaron Hager has that list.

Do you need more nitrogen? IL fertility specialist Fabian Fernandez says that depends on soil types, amount of rainfall, and when the rains came in relation to the time that N was applied. He suggests a test strip through the field with a higher rate of nitrogen, then compare. If the higher rate strip looks better, then more nitrogen in the field is needed.

Nitrogen #1. In silt-loam or fine-textured fields with poor drainage, if you had excessive rain, ponding killed the corn, about 2 weeks after applying UAN or 4 or more weeks after applying anhydrous ammonia, you might consider applying 50 to 100 pounds of N per acre for the new corn crop. This situation occurs most often in low areas of a field.

Nitrogen #2. In sandy or light-textured soils, if 7-8 inches of rain soaked in without run-off, 2 weeks after applying UAN or 4 weeks after applying anhydrous ammonia, it is likely that a substantial part of that nitrogen was leached out of the root zone. In this situation you might also consider applying between 50 and 100 pounds of N per acre.

Nitrogen #3. In silt-loam or fine-textured soils with poor drainage where a large rain event caused water to be ponded for 1 to 3 days and UAN was applied at least 2 weeks before or anhydrous ammonia at least 4 weeks before the time of waterlogged conditions, you might consider applying 30 to 50 pounds of N per acre.

Nitrogen #4. In fields where the chance of N loss is less than 30 pounds per acre, there is no need to worry about applying more. This would include fields where excess soil water was present for 1 to 3 days within a week after applying UAN or urea or where anhydrous ammonia was applied less than 3 weeks before soils were waterlogged. Where N loss potential is low in light-textured soils, where infiltrated rain was less than 4 in., and most of the applied nitrogen was not in nitrate form, then you may have enough.

Nitrogen #5. If UAN or urea was sidedressed in sandy soils followed by heavy rain, the amount of additional N needed will depend on rain totals. 7 to 8 in. of rain would leach the N out of the root zone. 4 to 7 in. would leach some out, and you might consider applying 30-50 lbs of N per acre. More N may not be needed for rainfall under 4 in.

Puny, sickly corn may not indicate a shortage of nutrients, says IL fertility specialist Fabian Fernandez, “It is not unusual for crops in fields or portions of fields to show nutrient deficiencies even though adequate fertility and proper nutrient management plans are followed for phosphorus and potassium.” He says many other factors could be at work in his newsletter.

Sickly, puny corn may also be a victim of nitrogen application. Iowa State agronomist John Sawyer says ammonia injury frequently occurs with shallow placed ammonia, ammonia application near planting time, urea placed near the seed, and dry soils.

Corn injury could result from some the additives that have been placed in tank mixed herbicides. Iowa State weed specialist Bob Hartzler says, “Symptoms associated with additives (surfactants, AMS, etc.) include chlorotic mottling or necrosis of leaves, and are likely to be short-lived with no negative impact on crop development.”

Quality concerns are being expressed about soft red winter wheat because wet weather fostered fusarium head blight, and that creates vomitoxin or DON. Wheat millers will be concerned and high dockage or refusals may greet unsuspecting wheat growers.

If fusarium infection is prevalent in your wheat field, keep in mind those kernels will be lighter in weight. By turning up the air in the combine, the lighter kernels will be blown into the field, and that may reduce the DON level when the wheat is tested at the elevator. High DON wheat can also be cleaned prior to delivery to make it more marketable.

The breeding herd will have to decline 5-10% to get pork supplies in line with demand to push prices up to the cost of production, say Glenn Grimes and Ron Plain at Missouri. They say demand is still down from the H1N1 virus blamed on swine and they add, “How long it will take to recover from this flu situation is not very predictable.”

Cold storage pork stats are unfriendly. IA Extension’s Shane Ellis says, “A year ago robust exports and strong domestic demand utilized a mountain of pork in cold storage. While this year’s volume of pork in cold storage has been less than a year ago, volumes have started to trend higher at the time that last year’s volumes started to decline.”

Shane Ellis says, “Cattle on feed numbers although lower than a year ago are slowly closing the margin of difference. Carcass weights are up from a year ago as feeders hold cattle longer to heavier weights. The tighter supplies of fed cattle will continue through the end of the year. From the latest range condition report it is unlikely that a drought occurrence will incur a mass placement of early wean calves.”

But those pasture conditions will impact the market, according to Ellis. “First, there will be plenty of feed for stockers, lightening the supply of feeder cattle available for feedlot placement. Last year feedlot placements were lighter when corn prices were reaching record highs. Second, with added grazing resources available there will be less pressure to cull cow herds. Although the number of beef cows will be lower, the number of dairy cows entering the slaughter supply is increasing with the dairy retraction.”

The process of crop scouting is methodical, says MO Extension’s Allen Wrather:
1) Determine the variety and the age of the plant.
2) Identify all the symptoms affecting the leaves, stems, roots and fruit.
3) Estimate the percentage of plants damaged in the affected part of the field.
4) Determine the distribution or pattern of the problem in the field.
5) Evaluate whether the crop and weeds in the field share similar symptoms.
6) Determine the history of the problem.