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About Soybeans (S)
Soybeans are relatively new to the agricultural seen. The importance
of Soybeans did not begin to show itself until after the second
World War. However, since then Soybeans have become a major crop
in world Agriculture. Soybeans are grown primarily for the beans,
which are processed into oil and meal. Grown primarily in the
Corn Belt states of Illinois, Iowa, Minnesota, Indiana, and Ohio
Soybeans are a short bush-like plant.
Besides being grown in predominantly the same area of the country
as Corn, Soybeans show a very similar pattern of building and
destroying of the crops "risk premium". At the on set
of the calendar year, the soybean crop too must deal tax related
selling as well as transportation problems. Soybean farmers have
a vested interest in postponing their marketing’s into the
new year for tax purposes, but typically at the beginning of the
year they must begin to transform their supply into cash to finance
the impending planting effort. Couple this selling with likelihood
that interior waterways, the primary and cheapest way to transport
grains, are frozen this time of year. Grain elevators, the middlemen
who buy grain from farmers and store it for later sale to consumers,
tend to lower their bids for grain during the winter to protect
their profit margins as the frozen waterways increase their transportation
costs. These forces tend to reach a crescendo in early February,
just before field preparation for planting and the rivers begin
to thaw. Soybeans tend to bottom a little ahead of the other grains,
as the South American Soybean Crop is approaching pollination
during January and February and therefore is very susceptible
to damage.
Usual Planting Dates for Soybeans
(Top 5 producing States)
| State |
Begin |
Most Active |
End |
| Illinois |
May 6 |
May 15 - Jun 9 |
Jun 16 |
| Iowa |
May 4 |
May 14 - Jun 2 |
Jun 17 |
| Minnesota |
May 6 |
May 16 - Jun 3 |
Jun 23 |
| Indiana |
May 5 |
May 15 - Jun 5 |
Jun 20 |
| Ohio |
May 5 |
May 10 - Jun 7 |
Jun 23 |
Dates based on the December 1997 USDA Agricultural Statistics
Board Usual Planting and Harvesting Dates report
Worries about the South American Crop development as well as potential
planting delay fears grip the Soybean market and cause prices to
bottom in early February. The bulk of the Soybean planting in the
United States is started by May 10th, with planting usually completed
by June 23rd. Ideally, planting should be done during mild temperatures
with moderate precipitation, so the ground is soft and easily manipulated
but firm enough to support the heavy farming equipment. If the temperature
is too hot/cold and too much/little precipitation is present then
soybean planting can be delayed. Late planted crops, or replanted
crops tend to produce lower yields. Planting delays have been a
frequent problem over the years, and therefore the market place
tends to be justified in building a risk premium this time of year.
Several days after planting, the Soybean plant begins to emerge
from the ground. Though the Soybean plant is considered one of
the most drought and foul weather resistant crops grown, until
its extensive root system develops, the Soybean plant is very
vulnerable. The Soybean pant is periodic in nature, so maturity
can be tracked on a calendar with accuracy of a few days for each
stage of development. After several weeks, the Soybean Plant begins
to form buds, which will eventually bloom, setting the stage for
pollination.
Soybeans are considered to have bloomed as soon as at least one
bloom appears on the plant. Each plant typically has several blooms.
The blooming/pollination process is the most critical stage of
development of the Soybean crop. Good pollination almost assures
a strong plant and good yields. Soybeans tend to pollinate in
the second or third week of July. After pollination, the plant
begins to form bean pods, which are roughly 1 to 2 inches long
and contain 4 to 6 beans. Once the Soybean plant has pollinated,
it has developed a vast root system, and is almost impervious
to most weather conditions, with the exception of a frost, and
therefore the crop is considered "made". The Blooming
phase of development typically lasts from early through to late
August, with pollination occurring roughly a third of the way
through the process.
The Soybean plant is considered to be Setting Pods when pods
are developing on the lower nodes with some blooming still occurring
on the upper nodes. Because Soybeans have such a vast root system,
the soybean plant is able to continue to grow in height, often
reaches heights of 72 inches before the Pods are fully developed
and the plant begins to deteriorate. Normally, during this stage
of development, which last from late July through late September,
prices drop precipitously as risk of damage to the crop is minimal.
As the pods develop fully, the lower leaves begin to die as nutrients
are used for pod development. Soybeans are considered to be Dropping
Leaves when the leaves near the bottom are yellow and dropping,
while leaves near the top may still be green, or when leaves are
30% to 50% yellow. Leaves typically drop from late August through
early October. At the later stages of Leaf dropping the plant
is susceptible to freezes, which can split the pods and damage
the crop.
The Soybean harvest usually begins by September 21st, with the
most active period being October 1st through October 25th. The
Soybean Harvest is normally completed by November 10th. Ideal
climatic conditions for harvest of the Soybean crop are moderate
to slightly above freezing temperatures with little precipitation.
Warm and wet weather can make field work messy, while early heavy
snow fall or severe rains can make harvest next to impossible.
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