Third of U.S. Corn in Poor or V. Poor Condition

Corn and soybean prices surge following USDA report on extent of damage to crops

Thirty percent of the corn in the 18 states that produce most of the U.S. crop is now  in poor or very poor condition, up from 22% last week, USDA reported.

The amount of corn considered to be in excellent or good condition has dropped to 40 percent this week down from 48 percent last week.

Sixty percent or more of the crop has been rated poor to very poor in Indiana, Kentucky, Missouri, and Tennessee.

Corn Condition – Selected States: Week Ending July 8, 2012. The 18 states planted 92% of 2011 acreage. Source: Crop Progress – Released July 9, 2012, by NASS/USDA.

Poor, Incomplete Kernel Set. Poor pollination of ear due to asynchronous pollen shed and silking (poor “nick”) due to severe drought and high temperatures; inadequate pollen supply due to uneven crop development, herbicides, insect feeding and silk clipping. Phosphorus shortages also interfere with pollination. Late applications of Lightning on Clearfield corn. Source: OSU-Extension. Image may be subject to copyright.

Corn futures surged 37 cents to $7.74 per bushel in afternoon trading Monday, up by more than $1 in a week.

Soybean Crop

The damage report also drove up soybean prices to a new record on Monday. Prices peaked at $16.79 per bushel before closing at $16.65, up 45 cents.

The USDA reported that 27 percent of soybeans were in poor or very poor condition in the 18 states that grow 95 percent of the crop, up 5 percent from last week.

Only 40 percent of the soybean crop was rated in good or excellent condition,  down from 45 percent last week.

Soybean Condition – Selected States: Week Ending July 8, 2012. Source: Crop Progress – Released July 9, 2012, by NASS/USDA.

Chain Reaction

The poor crops in the U.S., world’s top producer of corn (maize) and soybean, will cause a chain reaction in the global food market, dictating higher prices across the board including beef, chicken, pork, eggs, milk, bread, and causing global food crisis …

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