Monday, September 19, 2016

Ear Rot and Vomitoxin Being Reported In U.S. Corn and Wheat Crops

Well that doesn't sound good at all.

Last Chg
Corn 338-0+1-0
Soybeans 974-6+8-6
Wheat 405-2+2-0

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
And wheat:
...'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