From Agrimoney:
US corn harvest estimates fall - but so do prices
Lanworth, citing crop damage from hot and dry weather, cut its estimate for the US corn production, and Societe Generale cautioned over a downgrade too, although the caution failed to prevent prices losing ground in Chicago.Lanworth downgraded its forecast for the US corn harvest by 265m bushels (5.0m tonnes) to 13.668m bushels, after "temperatures during much of the last two weeks exceeded forecast levels across US production areas, while precipitation fell 50-90% below normal"."Relatively dry conditions are expected to continue in Iowa, Kansas, much of Missouri, and Nebraska through much of the next one to two weeks," the consultancy said."Without above-average precipitation during the final week of the month, precipitation this July could approach the historically low levels set last year."Indeed, the group cautioned over the potential for further downgrades in many largely westerly Midwest areas, including Iowa, the top corn-producing state."Initial field observations in central and northern Iowa indicate potentially significant yield losses due to poor planting conditions and establishment problems," Lanworth said.'Significant problems'Separately, Gail Martell, at Martell Crop Projections, said that "delayed planting dates, shallow rooting from a wet spring, and irregular development from a strung out planting campaign argue for a reduced yield in corn and soybeans".The comments follow a caution from Societe Generale that it might lower its estimate for the US corn crop to 13.4m bushels, from a forecast made last month of 13.9m bushels....MORE
