What Declining Crop Conditions Could Mean For Corn Markets

August 14, 2017 01:04 PM

In its latest crop progress report, the USDA is pegging a 169.5 bushel per acre yield for corn despite declining crop conditions in the I-states.

According to Dan Hueber of the Hueber Report, 2017 started on a lower base than in 2016. He said this time of year, the focus is on the supply, but the demand side is ignored.

“Any slip on the yield and you start reducing carryout,” said Hueber. “The old line of reasoning is if carryouts are moving, lower prices tend to move steady to higher. It’s a question mark on how much do we take that down.”

He said if corn slips below 2 billion on ending stocks, people pay attention.

Hear Hueber’s full thoughts on AgDay above.

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Spell Check

Darrell Sunvold
Willmar , MN
8/15/2017 08:28 AM

  The government has been lying for years. Keep in mind the FUNDS and the processors control the markets. It used to be the grain companies. THE ONLY way a farmer wins is when there is disaster in the country or in the world at some others farmers expense. Remember, the farmers have perishables, they have to empty their bins. PLUS big budgets for the corporations.

Muleshoe , TX
8/15/2017 07:21 AM

  USDA will not allow corn to go under the demand. Cheap food. They lie more and more every year. Average yield should be 162 range. If that. Many farmers in Iowa that made 200 bu plus last few years said they are cutting theirs for silage due to no ears. The producers should form a co-op and for a small fee to generate enough money over many producers to file a class action law suit against this branch of government. Time to show them we are ready to fight back. It's only going to get worse if we don't!!!

Eastern, NE
8/15/2017 08:37 AM

  NASS explained their methods in a previous Agweb article. Crop production is based on farmer response and crop condition is based on extension agents, CEDs, district conservationists and etc. So who is right? The farmer or specialist? What's their sampling base? Was it truly a good representative cross-section of farmers and specialists? Probably not based upon the disparity between the reports. In the meantime, we all suffer with the perceived supply. If you've got deep pockets, add the additional board of trade gambling to your annual expenses. Sucks doesn't it?


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