Monday, July 9, 2012

"Corn Belt heat wave breaks, but rains to miss driest areas"

Corn is up another 37.5 cents (5.41%) at $7.3050. We're looking for a spot to short this freight train and think after the WASDE we may get a chance for a little counter-trend.
From Reuters:

Sizzling temperatures abated in the U.S. Midwest Corn Belt over the weekend, but rains this week were expected to miss the areas that need it most, an agricultural forecaster said Monday.

High temperatures cooled into the 80s Fahrenheit over the weekend, and were forecast to remain there this week, following record-setting readings last week that topped 100 degrees, scorching corn and soybeans.

U.S. crop condition ratings for corn and soybeans fell last week, and grain traders expected the U.S. Department of Agriculture's weekly report later Monday to show further deterioration.

Crops will need rain to have much chance of rebounding, and forecasts looked mostly dry for the next 10 days from the central U.S. Plains across Iowa, Minnesota, Wisconsin and Illinois. In those areas, the corn crop should be reaching its critical pollination phase.

"Considering the forecast over the next couple of weeks, I think those areas are going to become bigger issues, especially central and eastern Iowa," said Kyle Tapley, agricultural meteorologist with MDA EarthSat Weather/CropCAST....MORE
Dr. Hazlett sent this picture of Douglas County Kansas corn: