The Buzz: Weather Rules
USDA estimate not the final authority on crop size.
Compiled by staff
Published: Aug 6, 2009
While traders talk up next week's big USDA reports, Mother Nature, not the government, will have the final say about the size of this year crops.
Senior Editor Bryce Knorr and Market Analyst Arlan Suderman discussed the Aug. 12 report on this week's edition of The Buzz.
Knorr said corn production should be adequate to meet demand, based on Farm Futures survey results, released earlier in the day, which showed a 12.545 billion bushel crop despite a 2 million acre cut in plantings. Soybean production could reach a record 3.275 billion bushels, but every bushel will be needed to meet strong demand.
As a result, even slight cuts in yield due to adverse weather could have a big impact on prices, says Suderman. While hot, dry weather is moving into the Midwest late this week, some years with similar patterns have also seen early frosts in western areas.
The Buzz - Aug. 6, 2009 from William Vogt on Vimeo.
World production could also be impacted by the developing El Nino, especially in the southern hemisphere. U.S. spring wheat yields look good, but low protein levels could may quality grain scarce, increasing premiums.
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Tagged: Bushel, farm, usda, wheat, farm futures
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