Where the corn is good it is really good. If it got planted in soils that were not too wet or flooded later the corn will be the best in several years. The rest of the corn that had way too much water is looking bad and has lost its green color, half of the height it should be, or was planted so late that it will struggle with late insect pressure as the insects will be looking for younger plants that taste better.
Final production will be hard to predict because of this uneven corn crop but we know that production will be greater than demand.
Looking forward what will be the new normal? High prices because of the last several years and especially last years drought has encouraged record corn planted acres. Today the corn prices for fall corn is 33% lower than last year. We have attracted acres from other crops, other states, and other countries. As they evaluate their options using the new lower income projections will corn still be the favorite? That is the question the markets are trying to solve. If prices go too low acres will be reduced and production lowered. Low prices will accelerate exports and commercial purchases. Although farmers do not like to see that 33% price reduction the market is doing what it need to do and find that balance. Also without a good market price discovery we would have no idea how much we would be able to spend on the future crops.
Will the new normal be as many corn acres, probably not but at what level I don't know.
Serving together, Dean
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