Corn reached a new record last week, as flooding in the midwestern states leads to more crop damage.  Friday was the eighth straight session that corn closed higher.  In addition to the flooding, the cooler temperatures that are forecasted for this week into next will be a negative factor, minimizing the potential for field drying.  Even outside of the growing areas along the major flood zones, soil moisture levels are at their highest in 15 years.  Given the most recent weather insults which support the Weather Trends forecast, our models are putting corn yields at 6-11% below the 7 year trend and soybean yields at 5-9% below trend for the 18 major growing states.  In addition to these projections, there is additional downside risk to the corn crop (bullish futures), as many farmers have been reporting anke-high corn, when most corn should be knee to waist high by mid June.

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This entry was posted on Monday, June 16th, 2008 at 4:14 pm and is filed under Agriculture, Global Commodities, Global Weather, Grains, United States. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.