The USDA, yesterday, released its first weekly crop progress report for 2009. Given that this was the initial report for the season, corn, soybean and spring wheat figures were not included. Initial planting progress reports for these crops are expected to be published over the next few weeks heading into early May. We will be issuing weekly highlights, typically on Mondays or Tuesdays, as these reports are released so stay tuned.

The USDA report published yesterday did include progress updates for winter wheat, showing that 43% of the crop for the 18 primary growing states is in either good or excellent condition. This compares to 45% of the winter wheat crop at this time last year.

Commodity prices continue to remain subdued relative to last year; however, as mentioned in previous postings the prices are remaining above longer term historical averages as acreage commitment expectations are impacting supply and demand projections for the year.

USDA expectations for farm incomes in 2009 are about 20% lower than last year, but more visibility should be available as the spring planting season gets underway.

- Colvin