Too Early to Start Worrying About Midwestern Corn Crop
With the Carolinas reliant on other parts of the country to make up the difference in grain supplies for the state’s livestock industry, weather woes in the Midwest become a concern on the east coast as well. With the current weather situation in the Midwest at corn planting time could we be facing another short crop this year, even before the season has begun?
Joe Vaclavik, president of Standard Grain in Chicago says it’s too early to worry:
“The weather has not cooperated to this point. Its just this past week that we finally saw a favorable weather forecast. The matter of fact is that we have no great correlation between late planting and low yields. There are some years that support it and others that don’t. We have a nice window of weather that opened up this week in the eastern corn belt, but the western part will need a few more days to dry out. But overall I don’t see it as a problem.”
So, to argue in the alternative, Vaclavik explains what he sees as far as prices are concerned later this year for a poor crop:
“This is the fourth year in a row that we have great expectations. The last time we had a very good crop was 2009. I think that the upside of the new crop corn market is enormous, if there is some kind of adduction discrepancy. If we have a repeat of last year, I think that the upside is huge. I think we will see higher prices than we saw last year.”
But, if corn growers produce at least an average to an above average crop, Vaclavic says prices will plummet:
“If you were to get that 160+ corn yield, there is a good case to be made for $4 corn.”
President of Standard Grain in Chicago, Joe Vaclavik.