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How big are the corn and soybean crops now?

Online Stock Market Trading By Darrel Good

Be generous with the watering of tomatoes, courgettes, sweet corn and cucumbers. Keep the liquid feed flowing generously too, enriched soil. Pick beans regularly to keep them cropping, and make sure they are never short of water. Make sure fruit trees against walls are also never short of water while the fruits are still swelling. Prune blackcurrants as you pick, taking out a number of the older stems altogether, to be stripped of fruit over your knee.

Stock Investing Course (AXcess News) Springfield IL - Corn and soybean prices continue to move higher in anticipation of yield reductions due to adverse weather conditions in the U.S. Soybean prices are also being supported by indications that acreage in the U.S. fell short of March intentions, by crop concerns in China and India, and by a rapid rate of consumption of the 2004 crop. Corn price strength has been much more modest than the increase in soybean prices due to large current stocks and indications that U.S. acreage exceeded March intentions.

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Stock Market Game As prices move higher, it is useful to try to estimate the U.S. crop size that is reflected by current prices. Obviously, a precise estimate cannot be made because other factors are influencing price. In addition, the relationship between crop size, consumption, and price varies over time. Still, prospective crop size is a useful question to pursue.

Both Atlantic Airlines ( 505 575 5055) and La Coste=a ( 505 575 5131) offer daily flights between Managua and Big Corn Island for around US$180 return. Travellers with more time on their hands and a thirst for the rugged route can catch a bus from Managua to El Rama, take a boat from there down the RÆo Escondido to the Caribbean port town of Bluefields, and from there, hop a boat (which currently runs on Wednesdays and Fridays) out to Big Corn. You can also catch a flight between Bluefields and Big Corn. Boats from Big Corn to Little Corn (40 minutes) leave daily around 10am, returning at 4.30pm. It's often a rough ride; try to snag a seat in back.

Stock Investing Game As a starting point, USDA's current projection of the level of stocks at the beginning of the 2005-06 marketing year and the magnitude of consumption during the 2005-06 marketing yea can be used. The current average farm price of corn and soybeans during the 2005-06 marketing as reflected by the futures market can be calculated based on a forecast of average basis and the monthly distribution of farmer marketings during the 2005-06 marketing year. Here, the three year average monthly basis and the five year average of monthly marketings (as a percentage of the total for the year) are used to make the calculation. Using that process, the futures settlement price from overnight trade on June 20 reflected an average 2005-06 marketing year farm price of $2.40 for corn and $7.20 for soybeans.

From fuel to interior parts, corn is growing in importance in various aspects of automobile manufacturing and operations. Corn is the main feedstock used in producing ethanol, which can be used as fuel either by itself or as an additive to gasoline, forming E85. Now, the same crop is going to be used in producing a stronger and much improved form of bioplastic. Mazda Motor Corporation, in partnership with leading Japanese companies, research institutes and universities, based plastic that can be used for automotive interior parts.

Journal Prime Rate Street Wall Given the USDA projections of beginning stocks and use and the current forecast of the average marketing year price, the only missing factor is crop size. Based on the historical relationship, an estimate of the year ending stocks to use ratio implied by current prices can be calculated. The difficulty, as described in previous reports, is that the relationship between price and stocks appears to have shifted over time.

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Stock Market News For both corn and soybeans the 'fit' between stocks and price was quite strong from 1989-90 through 1997-98, but a downward shift seemed to have occurred during the period 1998-99 through 2003-04 such that a given level of stocks-to-use was associated with a much lower price during the latter period. Which of those time periods, if either, is appropriate for forecasting the relationship in 2005-06? For now, we favor using the relationship during the earlier period, because that relationship more closely reflects the stocks and price situation being experienced during the current marketing year, particularly for soybeans.

Stock Investing Basics The average farm price of soybeans reflected by the current futures market ($7.20) implies a 2005-06 marketing year ending stocks to use ratio of 5.8 percent. Given the USDA's projection of use of 2.964 billion bushels, the ratio implies ending stocks of 172 million bushels, 83 million less than projected by USDA and implying a crop size of 2.812 billion bushels. If harvested acreage of soybeans is near 72 million, rather than the 72.6 million suggested by the March Prospective Plantings report, the market is trading an average yield of about 39 bushels per acre, compared to the trend yield of 39.9 bushels. Since year ending stocks cannot realistically be smaller than about 4 percent of use, a crop smaller than 2.765 billion bushels (38.4 bushels) would require consumption to be smaller than projected by the USDA. The need to ration use can result in sharply higher prices, at least for a period of time.

Stock Investing Software The average farm price of corn reflected by the current futures market ($2.40) implies a 2005-06 marketing year ending stocks to use ratio of 13.5 percent, or 1.44 billion bushels if consumption is near the 10.67 billion bushels projected by the USDA. That level of stocks is 1.1 billion bushels smaller than the current USDA projection, implying a crop of 9.885 billion bushels. If harvested acreage is near 75 million, rather than the 74.2 million suggested by the March Prospective Plantings report, the market is trading an average yield of 132 bushels per acre, compared to a trend yield of 145 bushels.

Stock Market Trading Based on the historic relationship between the last USDA crop condition report of the season and the average yield, the percent of the crop rated good or excellent that points to a soybean yield of 39 bushels and a corn yield of 132 bushels can be calculated. The calculation is 53 percent good or excellent for soybeans and 48 percent good or excellent for corn. Current ratings are well above those levels.

Stock Investing For Dummy The price and yield exercise described here has a number of shortcomings, but might be helpful in judging when to price new crop corn and soybeans.

Stock Market Crash Source: Darrel Good - Extension Economist University of Illinois

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