Weather is dominating the agriculture markets right now, and there could be a brief interruption in that theme following Wednesday’s July crop production report from USDA. But Arlan Suderman with INTL FC Stone doesn’t expect a market shock from the report.
“I really don’t look for this report to be a significant market mover at this point because USDA simply does not like to make adjustments to its corn and soybean yields in the July report,” he explained. “If it does make an adjustment that will be news. That will suggest a trend that will be followed in the August report.”
What has moved the markets recently has been the hot and dry conditions in the western corn belt, which is the exact opposite of Indiana conditions. Take for example just the last two days in the Howard, Cass and Carroll County areas. Mike Silver at Kokomo Grain says, “Not to be offensive, but biblical is the word that comes to mind here a little bit. Just vast amounts of water here in the last 24 hours here at Kokomo. I dumped 5.4 inches of rain out of the gauge upon arrival this (Tuesday) morning early, and during the day today we’ve had another 3 to 4 tenths, and that’s on the low end of the scale. As you go just ten miles north of here there were amounts up to 8 inches. We have ponds on ponds on ponds, and certainly the crops, soybeans in particular, are suffering.”
Additional reports indicated a reading of ten inches near State Road 29 in Carroll County.
Silver did tell HAT most all of wheat harvest has been completed and double crop soybeans went in the ground immediately following. He says there could be a silver lining in that crop.
“My opinion is we’re going to see some double crop beans faring better, given a break in this weather, than we’re going to see and are seeing some of our first, second and third plant, replanted soybeans fare.”
Suderman with FC Stone says this Indiana weather and any resulting crop losses is making it even harder for funds to get a handle on yields.
(Pictures courtesy of Cass County farm Dave Eshelman)