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A Big Rain Could Crash Corn Market

July 22, 2011
By: Sara Schafer, Farm Journal Media Business and Crops Editor

With extreme heat passing through the Corn Belt, the potential for a huge corn crop is diminishing. These conditions are supporting high corn prices right now, says Mark Gold, president of Top Third Ag Marketing.

“We’re certainly in a frenzy period right now with the hot, dry weather,” he says. “One good rain in this market and the market could head south in a minute.”
 
Gold says the high prices are worth protecting.
 
“I know you have incredible profitability in your corn and soybean acres right now,” he says. “Not protecting that is a big marketing mistake.”
 
Listen in as Gold provides marketing insight and advice.

 

Gold, Bob Utterback and Ken Ferrie joined host Al Pell for this week's U.S. Farm Report Marketing Roundtable. Watch it online this weekend at www.USFarmReport.com.

 
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Make Plans to Attend these Upcoming Corn College Events

Can’t make it to one of the Illinois Corn Colleges? Check these out.
 
Soybean College: Aug. 1 to 2., Coldwater, Mich.
With a large focus on in-field diagnostics, let Farm Journal Associate Field Agronomist Missy Bauer teach you the secrets to soybean production. This event will focus on fundamentals, soybean growth and take-home knowledge of how to raise better beans. World-record soybean yield farmer Kip Cullers will present a special breakout session. Click here to register.
 
Corn College “Fundamentals”: Aug. 3 to 4, Coldwater, Mich.
The Farm Journal Corn College Fundamentals session provides practical, hands-on training to help corn growers advance their production skills, increase yields and improve their profitability. This session is geared for the first-time Corn College attendee and will provide them with the core knowledge of how to use the Systems Approach on their farm. Click here to register

 

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COMMENTS (3 Comments)

BWEBB - TX
Agreed what a bunch of crap, one rain and market could crash? Prices are good but it doesn't mean that we cant go higher. There is clearly an attept to keep a lid on things. The last thing the Gov. wants is food inflation. The trouble is that its too late, we are here and it will get worse before it gets better.
2:12 PM Jul 23rd
 
BWEBB - TX
Agreed what a bunch of crap, one rain and market could crash? Prices are good but it doesn't mean that we cant go higher. There is clearly an attept to keep a lid on things. The last thing the Gov. wants is food inflation. The trouble is that its too late, we are here and it will get worse before it gets better.
2:11 PM Jul 23rd
 
WhyMeJake
I get really sick of hearing how a little rain or this and that will cure all our corn problems. Market crashing if we get rain? How about $9 - $10 corn if we get an early frost?

Here in Minnesota, we are about 50% silking. Some of this might not finish for another week. Add days to black layer and we are uncomfortably close to November. The government report keeps saying how the corn crop is in such great shape, they just forget to mention how far behind it is.

Yes, the market might have a temporary setback but I think it is a little early to do some panic selling. South and North Dakota, along with parts of Minnesota, didn't get a great percentage of their corn in. The water was so high that they had to dump sand on the roads to make them passable. And that wasn't anywhere close to the Missouri River, that was closer to Aberdeen. The government figures for planted acres don't seem to match what I have heard about those areas, maybe some of the farmers did some seeding from Airplanes.

To me, the numbers are a joke. Even China complained about them. Almost seems like there is an effort under way to keep the lid on prices. Funny thing, for one of the rarest occasions ever, we have a positive number on our corn basis. Somebody seems to be worried. Government numbers? Aren't they getting close to the promises of politicians? Or aren't they that honest?
4:00 PM Jul 22nd
 



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