A lot of farmers are facing a challenging summer in terms of weather. But the markets seem to be ignoring Iowa’s crop conditions.
No question, Iowa is a vital state when it comes to corn production. This year, around 15% (13.5 million acres) of the U.S. corn crop will be grown in Iowa, per USDA’s June estimate.
Currently the corn crop is not looking too promising. Here is the current corn condition report for Iowa:
- Excellent: 12%
- Good: 43%
- Fair: 31%
- Poor: 10%
- Very poor: 4%
Chris Barron, AgWeb’s margins expert and an Iowa farmer, says the markets seem to be ignoring the less-than-ideal conditions in Iowa and focusing on other areas.
On Straight from the Heartland, he provides this take on the current situation:
"This market has a mind of its own right now," he says. "We have a lot of risk factors at play on the production end."
He says that in 1993, a year with similar weather challenges, it took until October before anyone had a true diagnosis of the damage done to the corn crop. "I would venture to say it will take us until October to December to figure out how much production we really have out there."
Since other areas of the country are experiencing good weather conditions, Barron says, it is discounting the situation in Iowa. But, that will likely change. "The market will eventually have to recognize this reduction in acres and what the yield realistically comes in at."
Have a question for Chris? Email him at email@example.com.