Extension 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.

Monday’s crop report was a “tweaking” of prior estimates. Aug. 31 stocks were forecast at 987 mil. bu., and the average price was tightened to $3.00 to $3.10. Estimates of the coming marketing year were unchanged, except for carryout being raised to 997 mil. bu. and the average farm price for the coming year estimated at $3.10 to $3.70.

Outlook Specialist Darrel Good says December ‘07, ‘08, ‘09, and ‘10 corn futures contracts are over $4.00, with the deferred contracts reaching new highs. Prospects for extreme price volatility will make new crop corn and soybean pricing decisions very difficult, particularly for those in dry areas. Still, the high prices offer good returns.

For soybeans, the USDA made no changes in the projections for the current US marketing year. Extension’s Darrel Good says, “The pace of the domestic crush through April suggested that the projection for the year might be increased. Projections for the 2007-08 US marketing year were also unchanged from May, except that the forecast of the marketing year average price was increased by $.15, a range of $6.65 to $7.65.”

Soybean prices could still be bolstered by exports, according to Iowa State Specialist Bob Wisner. Exports from Sept. 1 through May 24 were up 22% from 2006, while the season total projected exports are up 14%. That means exports will have to decline 57% to reach USDA estimates. “If weekly exports for the next several weeks are not down this much, export demand will likely provide additional support for soybean prices.”

The market awaits USDA’s June 29th acreage report, which Bob Wisner at Iowa State says will indicate whether weather and market conditions caused farmers to deviate from earlier plans to sharply increase corn plantings and to sharply reduce soybean and cotton acreage. He says, “A weaker corn market than when the March 1 planting intentions survey was taken and delayed plantings open up the possibility that a few more acres of soybeans and a few less acres of corn were planted than farmers intended on March 1.”

Wheat markets have seen healthy advances this week, in part from USDA’s crop report, which decreased the 2007-08 ending stocks to 443 mil. bu., says Missouri ag economist Melvin Brees. “Also, world wheat production estimates declined 6.7 mmt, reflecting production problems in Russia and Ukraine. World wheat 2007-08 ending stocks continue to decline. They are now projected at 112.03 mmt and the lowest in 30 years.”

Hog slaughter is running 3.5% more last year, well above the 1.6% increase expected in the March USDA pig crop report. But imports from Canada are up 8.6%, which raises the US slaughter rate to only 3.3% since March 1. Livestock economist Glenn Grimes at Missouri expects USDA to make adjustments in the next hog and pig inventory report.

Hot and dry conditions will speed up the larval and pupal development of many soil insects, including corn rootworms, say entomologists. It is known that drought stress may affect the synthesis of proteins in corn tissue in positive as well as negative ways. The effects of drought on protein production depend on the severity of the drought.

Bt hybrids perform about the same as non-Bt hybrids with the respect to leaf appearance and tasseling going into a drought period, according to research at Iowa State. However, at the end of the growing season, there were significant differences between the two. Total plant weight and total grain yield were 9-10% more for Bt hybrids.

Western bean cutworms, which are quickly spreading across the Cornbelt, are expected to invade corn fields by late June, but accurate identification is needed before spraying. IL Extension Entomologists are soliciting reports of confirmed captures in pheromone traps, but are finding others also. Scouting tips.

Bug battles! It seems quite early, but entomologists are reporting significant numbers:
1) A trap averaged 4,700 Japanese beetle catches per day last week in Southern IL.
2) Soybean aphids in MI are at economic thresholds, even at early vegetative stages.
3) European corn borers may have a larger second generation this year than seen in 2006.
4) True white grubs are being found periodically, and are significantly damaging crops.
5) Asiatic garden beetles have become a new invasive threat to IN corn in sandy soils.
6) Burrower bugs are being linked to heavy root damage in IL corn for the first time.
7) Spider mites are being found in soybean fields where plants are stunted by drought.

At-risk corn should be checked for nematodes and this is a good time to do that. If you have second year corn, low or no-till corn, and have not applied a nematicide, or an insecticide that suppresses nematodes, get a soil sample and have it tested. Tips on sampling.

Dry soil conditions can reduce weed control efficacy of some postemergence herbicides, and some weeds can be difficult to control even though they are growing. Extension weed specialist Aaron Hager says increase application above 0.75 lb ae/acre if drought conditions are prevalent, weeds are over 6 to 8 inches tall, and/or "tough" weed species, such as annual morning glory, common lambsquarters, or perennial broadleaves, are prevalent in the field. Include Ammonium sulfate with all glyphosate applications.

Curled leaves in the afternoon are decreasing the overall growth rate of corn, but IL Extension’s Emerson Nafziger says crop prospects have not been compromised greatly up to now. If tasseling is less than two weeks away, it is close to the maximum sensitivity to dry soil stress, and the potential for yield loss will increase if the crop shows stress in the week before tasseling. If it continues into pollination, there can be serious yield loss.