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. (UPDATED)

Exports are a function of the dollar and Darrel Good says its value is now a function of the roiling financial markets. The IL marketing specialist says corn exports are behind 2007, but it is early in the marketing year. Since Sept. 1 export inspections have been 50% of last year and through Sept. 11 export commitments have been 60% of last year.

Soybean exports are also lagging behind 2007 levels, but Darrel Good says unshipped sales exceed 2007 volumes. USDA expects a 13% drop in soybean exports for the marketing year, but the early picture shows a 9% increase. Read his weekly newsletter.

US grain exports will be competing against global production, which is expected to reach record levels in the current marketing year. For example, wheat production will be large enough to raise ending stocks for the first time in 4 years. However, wheat growing areas of Australia and Argentina are still suffering from dry weather conditions.

Global coarse grain production is also noted by Extension’s Jim Hilker at Michigan State. He says world coarse grain ending stocks in 2009 will be 3 MMT larger than once expected; and while the world corn production estimates have been lowered because of a smaller US crop, the world coarse grain situation looks bearish to the market.

Hilker’s observations on marketing first include a comparison of the Dec corn contract and the Dec light crude oil contract, which he says is a bit scary, then rhetorically asks, “But what do you expect when 25% of your corn crop is used as a competitor to oil?” He says don’t carryover any old corn, and consider pricing new corn on sharp upswings in the price of oil. Hilker says the market is apparently willing to pay on-farm storage.

Regarding soybeans, MSU’s Hilker says given soybean production around the world and current ending stocks, the world will not be short on soybeans, assuming South America raises its expected crop. He says the market is willing to pay for on-farm soybean storage, but only into March. After then the spreads narrow and don’t cover either storage or interest. He says watch for sharp price upswings to do further pricing.

Michigan State’s Jim Hilker says the wheat basis has problems with predictability. He suggests wheat producers sell cash, and buy futures if they thought the market would rise, or use a basis contract, which does the same, and is more profitable than paying for commercial storage. Hilker says CBOT officials have proposed more delivery points to solve the convergence issue between cash and futures, but he says it will not be solved until futures contracts force delivery. Read more.

More corn ear rots are showing up, (see the Sept. 19th edition) and the fungi will grow while corn is in the field or even in the bin as long as moisture is at or above 18%. IL plant pathologist Suzanne Bissonnette says that may determine your priority of when to harvest, particularly if the infection is moderate and wet weather continues.

Your variety of fungus will determine how dry the corn has to be. If you have diplodia and the corn will be in long term storage, 15-16% should be your target. If you have aspergillus, it will grow in 14-18% moisture and produce aflatoxin, which is not good.

UPDATE: Know your corn fungi. Fusarium is a pinkish colored fungus growing on the kernels and produces a mycotoxin called fumonisin, which will reduce the value of the corn as a livestock feed. Diplodia can be identified by a bleached color on the husk, with a white fluffy fungus on the ear. It will not produce toxins, but the kernels will be light in weight, shriveled, and poor quality. Droughty areas should be scouted for the presence of aspergillus, since it will produce a mycotoxin called aflatoxin, which can cause cancer. Read more.

UPDATE: Carefully harvest at-risk corn as soon as the moisture content reaches 23% to 25% for shelled corn. Set the blower on high, adjust the combine to minimize kernel damage, and create cracked corn and fines that will enhance mold development once in the bin.

UPDATE: To prevent continued fungal growth, dry corn to 13% (for long term storage) or 14% (for quick sale) moisture within 48 hours after harvest. Use heat to reduce the moisture, and don't rely on natural air drying. Aflatoxin levels can expand to Biblical proportions if infected corn is stored at high moisture levels. Fields infected with aflatoxin should be reported to a crop insurance adjuster prior to harvest.

Make only one combine adjustment and evaluate its success before any other changes says Iowa State. Read more.
1) With shorter beans, keep in mind that 90% of field losses are at the header.
2) Each one inch of uncut bean stubble can result in a one bushel per acre yield loss.
3) If beans are small, reduce cleaning fan speed to avoid blowing soybeans away.
4) If sieve openings have been reduced, also reduce the airflow to compensate.
5) Adjust deck plates over snapping rolls for predominant ear size to avoid kernel loss.
6) If corn is lodged, keep snouts low, drive slower, and harvest “against the grain.”

Hurricane Ike’s track through the eastern Cornbelt left many acres of downed corn, and OSU ag engineer Randall Reeder says that means harvest will be more stressful and longer than usual. He’s concerned about tired and frustrated farmers ignoring safety:
1) Find harvesting aids that specifically deal with downed corn.
2) Before solving an in-field problem, turn off the combine first.
3) Use any auto steering or guidance equipment available to reduce vision stress.
4) Adjust the header to accommodate downed corn plants and broken stalks
5) Tape safety reminders in the combine cab, take breaks, stretch, and drink water.

Harvest may put you in a no-win situation when it comes to soil compaction. With wet soil and a late harvest, IL Extension’s Duane Friend says many producers will take compaction as the lesser evil. If that happens, plant stress will show up next spring.
1) Restrict trips to specific tracks or lanes. The second trip compacts less than the first.
2) When unloading, use the combine wheel track on the prior round in the field.
3) Never cross the field diagonally, even though that may be the shortest distance.
4) If a semi cannot be parked on the road, at the least, keep them on the headland.
5) Tires that are over inflated will increase the compaction of the soil.
6) Soil compaction is cured by wetting/drying/freezing/thawing and just takes time.
7) Only well-defined compacted layers 4+ inches down are candidates for sub-soiling.

Alfalfa cuttings have been delayed all year, and you may have one more cutting, but will that interfere with the fall rest period? Iowa St. forage specialist Steve Barnhart says that will continue for 6-10 more weeks. Read more.
1) If you don’t need the hay, leave it in the field and don’t graze in fall or winter.
2) If you need the hay, wait for a killing freeze to cut it, and leave 4-5 inch stubble.
3) Cutting hay now causes the plant to re-grow, unnecessarily using its stored reserves.

When your crops are out, get a soil test and set a date for your quadrennial limestone application. Row crops like a pH of 6.0, and the pH should be 6.5 to 7.0 for alfalfa and clover. It also enhances nitrogen fixation and improves soil structure, and if being spread on a field that will be planted to a legume, spread 6 months ahead for good soil reaction.

A new crop of winter annual weeds will be germinating in the next couple months, and may be more numerous than last year. Reductions in use of pre-emergent herbicides, a shift to post-emergent use of glyphosate, primarily, and increased no-till practices have spawned the weed crop that Dad never saw. Visit this resource to brush up on winter annuals.
1) Dandelions, marestail, henbit, and pennycress are harder to control in the spring.
2) If soil moisture is short, control of winter annuals saves moisture for the spring.
3) Fall herbicide applications can save time in the spring and allow timely planting.

With late maturing soybeans, wheat will be a late planted crop. IL Extension’s Mike Roegge says that means fewer fall tillers will develop and he suggests increasing the seeding rate. He says for each week that seeding is delayed beyond the Hessian fly free date, the seeding rate should be increased 10%. 20-30 lbs of N is recommended also.

Speaking of Hessian flies, the purpose of planting wheat after the date for your latitude, is to prevent females from laying a full complement of eggs. If wheat has not germinated, the Hessian fly will not have the opportunity for larvae to hatch and survive. They live at the base of the plant, remove plant juices, and the wheat will fail to tiller.

When harvesting corn stover for ethanol production, your nitrogen bill goes down. That is the thought of MN agronomist Jeff Coulter, who says when 50% to 100% of the residue is removed from continuous corn crops, the optimum N rate is cut 13%. Coulter says less N is needed for the next year because corn residue immobilizes the N and promotes tie up of N by microorganisms in the soil. Read his fact sheet on residue harvesting.

Export demand continues to support pork prices where they are. MO economist Glenn Grimes says the value of pork exports per hog slaughtered in Jan-July was $35.89 per head, and that is up 46% from 2007. Grimes says the net exports caused the 9% increase in demand for live hogs for Jan- July, while US consumer demand for pork dropped 4%.

On the issue of production costs, Grimes and cohort Ron Plain say the 2007-08 marketing year price for corn was $4.20, but that will rise in 2008-09 to a range of $5-$6 according to USDA. The livestock economists say that will increase the cost of hog production by $4-$9 per cwt in the coming year, compared to the past 12 months. For cattle producers they say the higher cost of corn will add $48-$108 per head cost.

If your farm kid has a desire to be an ag engineer, Cornbelt Land Grant Universities are among the tops says US News & World Report. Illinois is best for the third consecutive year. Iowa St. is #4, Purdue is tied for #5, and Ohio St. & Penn St. are tied at #8.