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Drought Devastating Crops, Driving Prices Higher

Posted By James Bianco On July 6, 2012 @ 8:30 am In Commodities,Think Tank | Comments Disabled

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The New York Times – Searing Sun and Drought Shrivel Corn in Midwest [2]
Across a wide stretch of the Midwest, sweltering temperatures and a lack of rain are threatening what had been expected to be the nation’s largest corn crop in generations. Already, some farmers in Illinois and Missouri have given up on parched and stunted fields, mowing them over. National experts say parts of five corn-growing states, including Indiana, Kentucky and Ohio, are experiencing severe or extreme drought conditions. And in at least nine states, conditions in one-fifth to one-half of cornfields have been deemed poor or very poor, federal authorities reported this week, a notable shift from the high expectations of just a month ago. Crop insurance agents and agricultural economists are watching closely, a few comparing the situation with the devastating drought of 1988, when corn yields shriveled significantly, while some farmers have begun alluding, unhappily, to the Dust Bowl of the 1930s. Far more is at stake in the coming pivotal days: with the brief, delicate phase of pollination imminent in many states, miles and miles of corn will rise or fall on whether rain soon appears and temperatures moderate.

Source: Bianco Research [3]


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[1] Image: http://www.ritholtz.com/blog/wp-content/uploads/2012/07/corn0705703122_big.gif

[2] Searing Sun and Drought Shrivel Corn in Midwest: http://www.nytimes.com/2012/07/05/us/for-midwest-corn-crop-the-pressure-rises-like-the-heat.html?_r=1&smid=tw-nytimes&seid=auto

[3] Bianco Research: http://www.arborresearch.com/bianco/?p=65248

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