Two From Agrimoney, September 16. First up, corn:
PM markets: grain futures rally, on fears of a US washout
...Ear rot reported
Still, as well as delaying the harvest, the rain is raising the risk of disease in the crop.CHS Hedging noted "scattered reports of diplodia [ear rot] in corn"."This is something traders will continue to watch as harvest progresses to see if it is going to be anything more than a localized issue," CHS said."Stalk integrity and ear mould are already concerns and will increase further if rains continue falling in the corn belt," said Mr Cronin....MORE
...'Sprouting, vomitoxin, uneven quality…'
"The quality of wheat in 2016-17 is likely to be much lower than the average of recent years, and last year as well," the USDA said in a report."Intelligence reports about low protein content, low test weights, sprouting, vomitoxin, and uneven quality of the new harvest arrive from many parts of the world."(Vomitoxin is a toxic fungal residue which can, in high enough concentrations, render grain unfit even for use in livestock feed.)The quality decline was viewed in part as a reflection of strong yields, "as wheat yield is negatively correlated with quality" - protein levels, for instance, tend to be lower in times of high productivity.However, the USDA flagged too damage from late-season rainfall, with moisture on ripe crops encouraging sprouting, and quality downgrades, rather than boosting grain-fill....MORE