Agronomist Notes

Over the years, I’ve heard of recommendations for the addition of calcium to crops like canola. The beat to this drum has faded to the background. I’ve also heard controversial questions of whether to add gypsum to correct soil pH (which it doesn’t do), and how to “balance” base saturation ratios. This week’s issue will focus on the realities of using lime and gypsum and where these products fit into crop production.

Limestone and Gypsum – Am I Missing Something?

Limestone and gypsum are both excellent sources of calcium for crop production. The difference between these materials is that limestone also neutralizes acidity while gypsum does not change soil pH. Naturally acidic soils (pH<6) require periodic liming to adjust soil pH for optimum crop production. When we apply a ton of calcium carbonate limestone to correct soil pH, we are also applying approximately 800 lb/ac of calcium.

Crop removal of calcium ranges from less than 7 lbs/ac for a 40 bu wheat crop to over 70 lbs/ac for a 2 ton alfalfa hay crop. Liming acidic soils to maintain soil pH in the optimum range will easily maintain calcium levels against crop removal. Also, the average soil Ca level from agronomic samples run through the ALS Labs in Alberta last year was 2,910 lb exchangeable Ca/ac. Thus, supplemental calcium fertilization is not normally necessary to meet crop demands. Gypsum can be used as a calcium source when the pH-increasing effect of limestone is not desired.

In addition to meeting crop demands for Ca, another concern is maintaining adequate Ca on the soil cation exchange capacity (CEC), which is important for maintaining adequate Ca availability and for maintaining soil physical properties. The concept of “Ideal” Basic Cation Saturation Ratios (BCSR) was developed in the 1930s and 40s and suggested an ideal percentage of basic cations (Ca²⁺, Mg²⁺, K⁺) on the soil CEC. The BCSR is conceptually correct, but extensive research has shown that, while a general balance of cations in important, there is a wide range of cation saturation ratios that will result in maximum crop yield and good soil physical properties.

From a practical management point of view, if K and Mg in the soil are adequate but not excessive and if the soil pH is adjusted to near the optimum range for crops, there will be plenty of Ca and there is no reason to adjust the soil further to try to achieve specific basic cation saturation ratios.

The other area where gypsum comes up is related to improving soil physical properties. It is true that having adequate Ca and Mg on the CEC is important for promoting and maintaining good soil aggregation. However, again if soils have adequate K and Mg and are limed to an optimum pH there will be plenty of these cations to maintain good soil structure and no further adjustments in cation ratios are necessary.

Adapted from: Crop and Soil Sciences, Douglas Beegle

Top Ten Wheat Producing<
Countries, 2005 (Tonnes)

1. China 96,160,250
2. India 72,000,000
3. USA 57,105,552
4. Russia 45,500,000
5. France 36,922,000
6. Canada 25,546,900
7. Australia 24,067,000
8. Germany 23,578,000
9. Pakistan 21,591,400
10. Turkey 21,000,000

Top Ten Barley Producing
Countries 2005 (Tonnes)

1. 1. Russia 15,773,000
2. 2. Canada 12,132,500
3. 3. Germany 11,722,500
4. 4. France 10,357,000
5. 5. Ukraine 9,000,000
6. 6. Turkey 9,000,000
7. 7. Australia 6,640,000
8. 8. UK 5,545,000
9. 9. USA 4,620,020
10. 10. Spain 4,448,400

Top Ten Canola Producing
Countries 2005 (Tonnes)

1. 1. China 13,050,010
2. 2. Canada 8,446,600
3. 3. India 6,400,000
4. 4. Germany 4,658,700
5. 5. France 4,419,000
6. 6. UK 1,914,000
7. 7. Poland 1,434,032
8. 8. Australia 1,125,000
9. 9. Czech Rep. 775,252
10. 10. USA 680,000

Source: Food and Agricultural Organization of the United Nations

Grains Markets Aim To Heat Up The Summer Slowdown

With large South American crops, smaller than expected 2006-2007 US corn supplies and largely unpredictable weather, traders from the floor to the screen are poised for one of the most volatile market conditions since the movements of the mid 90's. Starting March 30th, 2007 crop reports might quite possibly enflame limit moves across the product spectrum due to yield concerns. In most years, these factors would be enough to move markets to their extremes, but this year an added focus on Washington is looming large over the market given increasing lobbying for expanding bio-fuel mandates and upcoming Presidential campaign where candidates will try to out-do their opponents on bio-fuels initiatives. Look no further than the most recent State of the Union address. In a very topical and to the point address, Bush took the time to detail his thoughts and plans in regards to bio-fuels and their impact on the US Economy at large:

Source: FutureSource.com

Wheat Shows Up Late For The Party

"The market is indicating bearish underlying fundamentals through the wide March-to-May futures spread. Fundamentals can be quickly summed up by looking at ending stocks-to-use projections. U.S. 2006/2007 ending stocks-to-use ratio is seen at 23 percent, about even with the last 4 years. World wheat ending stocks stocks-to-use ratio is about 20 percent. By comparison, ending stocks-to-use ratios for corn are much tighter (6 percent for the U.S., 12 percent for the world). These ratios indicate we have enough wheat on hand that buyers don't feel pressured to cover more than immediate needs, hence the wide futures spread.”

Source: DTN Market Matters

Wheat Buying into Feedlot Casseroles

Like the frugal housewife who adds a little more filler to the meatloaf, feedlots may be adjusting their recipes to include more wheat. Or will they?
The wheat/corn spread has narrowed dramatically this month, as wheat prices have sagged and corn prices have risen. "Historically wheat prices within 25 to 50 cents of corn are where feeding starts to occur, and we dropping in this area this week," said DTN Contributing Analyst David Fiala.

Like the housewife who faces a fussy husband or child, however, substitution of wheat for corn is not always a simple thing. Practically, the feeder must be assured of a longer-term supply on a steady basis. "Grinding wheat is different from grinding corn," said DTN Livestock Analyst John Harrington. "A cheap couple of truckloads of wheat are not worth it" to a dairy or feedlot (a 10,000 head feedlot that feeds 10 pounds a day requires 2 truckloads of grain a day)," said DTN Dairy Analyst Rick Kment.

What may happen if the spread continues to be favorable, the two said, is that some southern lots may work some wheat into rations as a substitute for a small part of the total grain use where wheat supplies are abundant.

Source: http://blogs.dtn.com/roller/grainmarkets/entry/200702153

Big Australia Wheat Crop Eyed; Single Desk To Stay

Australian wheat growers could produce a bumper crop late in 2007 that likely will be exported through a system that's little changed from now, despite a review of arrangements under way, Murray Jones, president of grower lobby Grains Council of Australia, said Monday.

A drought that slashed wheat production by more than 60% in 2006 appears to be easing, compounding the positive price signals being received by growers from world markets, he said.

"The seasonal outlook looks positive and the prices look firm, so I would expect that would give farmers a fair bit of heart," he told Dow Jones Newswires.

Jones didn't venture a production estimate but noted that Ron Storey of Australian Crop Forecasters told a grains growers meeting last week that output next crop year could reach 26 million to 27 million metric tons, well up from actual production of 9.8 million tons this crop year ending March 31.

If Storey's projection comes to pass, export wheat availability from the next crop could increase fivefold to more than 20 million tons, from 4 million tons from the old crop, helping Australia regain its long-standing role as one of the world's top three exporters.

Source: Dow Jones Newswire

Export Demand For Canola Fades?

There's been much discussion about whether exporters have backed away from the canola market in Canada or whether they are actually actively engaged in putting new sales on the books. Most market participants were of the opinion that exporters have backed away from the market with no intention of making new sales until new crop canola was available. The broker was fairly confident that no new sales were being booked. "Why, would they buy Canadian," he questioned, noting that it will take some time to clear up the backlog at the West Coast export facilities, even if the strike at CN comes to a legislated termination this weekend.

He also pointed out that Chinese buyers were still out on holidays. An export source said Mexico was believed to have covered its canola requirements through to new crop availability.

"European rapeseed is also a lot cheaper than Canadian canola at present, making it more attractive for countries like China, Bangladesh and Pakistan to make purchases there, rather than from Canada," the exporter said.

He said while everyone is making a big deal about the need of rapeseed from Europe for the biodiesel sector, there are still plenty of supplies to cover requirements from those countries. China's canola needs were also likely to diminish somewhat in the near future as that country's domestic rapeseed harvest gets underway soon.

Source: http://news.tradingcharts.com/futures/2/9/89737092.html