Wednesday, September 3, 2008

Corn falls for 4th day as Gustav brings rain to crops. And: Wheat Yields Drop in Dreary Washington Weather

From MarketWatch:
Corn futures fell for a fourth straight session Wednesday, as rain brought by Hurricane Gustav was expected to support crop growth in the Corn Belt region of the Midwest.
Corn futures for December delivery lost 7 cents, or 1.2%, to close at $5.62 a bushel on the Chicago Board of Trade. Earlier corn fell to $5.50, the lowest since Aug. 15.
There is no sign of freezing in the Corn Belt for at least the next two weeks, according to, as remnants of Gustav are expected to bring rain to central areas of the region this week....MORE
And, from StormWire:

Wheat farmers are reporting below average yields across the state this season.
– Unseasonably cold and wet weather delays Washington wheat harvest by 2 weeks.
– Speculating farmers will take losses for refusing to sign fixed-price contracts last year.
Optimism is in short supply for wheat farmers in Washington, as unseasonably cold and rainy weather continues to delay harvests across the state. Recently cold, wet weather has forced wheat harvests two weeks behind schedule, costing farmers valuable time and revenue this season.

Problems began earlier this year when a snowy winter delayed much of the spring planting. When a large quantity of the 600,000 acres of spring wheat finally emerged, the fragile shoots were battered by scorching heat one week and unforgiving frost the next.

Making matters worse, record grain prices last winter prompted growers not to sign large fixed-price contracts this year, because they hoped to capitalize on another market price boom. The harsh weather has caused their risky decision to backfire, forcing several farmers to face far lower yield prices....MORE