With the corn crop getting planted late in key states, acres that couldn’t get planted at all, and the overarching need for both an increase in heat units and moisture in important production regions, it’s not like the 2013 crop is in the bag
Far from it, according to results from Pro Farmer’s Midwest Crop Tour August 19-22 that surveyed the epicenter of corn and soybean production areas in seven states in the heartland.
Don’t expect year-ago prices is the watch word. "It’s going to be a record corn crop and you have to market accordingly," says Chip Flory Pro Farmer editor and director of the Western Crop Tour. This is despite problems of immature ear development for late August, the risk of an early frost and other challenges the crop faces, he adds.
The good news: "Prices will get low enough to get export demand back," says Brian Grete, Pro Farmer Senior Market Analyst. "Watch export demand to build strength." Already, promising signs are surfacing for upticks in corn exports to China and elsewhere, Flory notes.
There could well be weather-driven price movements, however, between now and harvest, because the market has seen week after week of good to excellent crop ratings and could be sensitive to information to the contrary. "It sees a big crop that’s getting bigger," Grete says.
Already, USDA shaved the edges of its crop expectations in the August 12 crop report based on changing conditions. Stay tuned to see if the September report reduces production further.