Floods may push corn inventories to historical low ( analysts warn of $10 corn )

MarketWatch ^ | June 27, 2008 12:15 p.m. EDT | Moming Zhou, MarketWatch

[Ernest_at_the_Beach]

USDA to report acreage; analysts warn of $10 corn and possible supply crisis

SAN FRANCISCO (MarketWatch) -- Recent Midwest flooding may have damaged millions of acres of corn crops, analysts expect the U.S. Department of Agriculture to say in its crop acreage report slated for release Monday.

The loss of acreage could slash U.S. corn production and push the 2009 season's year-end stocks to the lowest level since just after World War II, analysts said. And the real damage is likely to be even worse than what Monday's 8:30 a.m. EDT report will show, as it's still too early to evaluate the full impact of the flooding.

"The report is already obsolete," said Elaine Kub, a grains analyst at commodities-information provider DTN. Many acres could be abandoned at a later date and the acreage situation will be worse than the report sounds, she said.

The acreage report is likely to show that the U.S. will harvest 77 million acres of corn in the 2009 season, down 1.8 million from the USDA's March report, according to an estimate from Shawn Hackett, president of agriculture futures brokerage Hackett Financial Advisors.

[SERKIT]

The Immorality of Ethanol

“The ethanol mandates that have been foisted on American taxpayers are not just fiscal insanity, they are immoral. Congress has created a system of subsidies and mandates that requires the U.S. to burn food to make motor fuel, at a time when there is a global shortage of food and no global shortage of motor fuel.”

[Abathar]

The farmer who lives across the street from me farms 1100 acres. Since the last snowflake fell he has been as happy as can be over the climbing corn prices, he thinks it’s the greatest thing since sliced bread.

Too bad he lost almost his entire crop this year to the flood, he’s back to his usual sourpuss self again to the point I can’t stand to associate with him.

[NormsRevenge]

wow,, wished I’d stay down on the farm.. damn.

[Don'tMessWithTexas]

I have heard estimates that the corn crop will be down by 30% from last year. I think that is optimistic. While alot of the upland corn I see in the field looks pretty good, any lowland corn looks kind of puny if there is any corn coming up at all.

Plus, alot of fields simply aren't planted yet. That means that alot of acreage just won't be planted at all this year.

Tough year.

[N. Theknow]

Floods may push corn inventories to historical low ( analysts warn of $10 corn )

A Democrat controlled Congress has passed a "No Plant" bill as it would take too long for any new corn to come on the market.

"We must move away from corn and find alternative food sources," said House Speaker Nancy Pelosi.

Senate Majority Leader Harry Reid echoed her sentiments and went on to say, "Planting more corn in the pristine wilderness of Nebraska is not the answer. Wind farms and solar farms must be the future means to fill empty stomachs as we seek to get away from the evil corporations that make up 'Big Crop.'"

Senator Bill Nelson of Florida chimed in by stating that the farm lands of Florida should be off limits to planting as the unsightly corn stalks would be visible from Florida's roads and highways and blight the view of billboards advertising the state's theme parks. "It would be a disaster."

[headstamp 2]

“We can’t plant our way out of this crisis!”

[RoadKingSE]

Recent Midwest flooding may have damaged millions of acres of corn crops, analysts expect the U.S. Department of Agriculture to say in its crop acreage report slated for release Monday.

A perfect opportunity for the Duke brothers to corner the corn market, assuming Mr. Beeks can get an advanced copy of that crop report.

[BurbankKarl]

$10 an ear of corn? I may have to cut back.

[muawiyah]

At the same time the part of the Cornbelt North of Champaign-Urbana was hit by drought for the last 3 seasons and produced little more than silage.

This year all of that land is back in production. Indiana and Western Ohio have not suffered the flood losses found elsewhere, and they can easily meet market needs for feed simply by delaying the harvest about 1 week to let the corn develop a little bit more.

Knowing acreage planted doesn't help much when the real issue with corn is yield per acre.

Also, a lot of the lost farm land was in Missouri and Nebraska, neither area being a prime producer of quality corn.

[hadaclueonce]

Cargil CEO just smiled.

[Red_Devil 232]

You forgot about the 68 Million Acres in the Rockies that farmers have not plowed, sowed and reaped!

[wolfcreek]

Buy corn and bullets.

Someone is stealing the farm diesel from the irrigation pumps.

http://www.chron.com/disp/story.mpl/business/5857382.html

[Iowa Granny]

$10 an ear of corn?

That would be $10 a bushel. And that is for shelled corn, not corn on the ear.

There were already fewer acres of corn planted this year than was planted in 07. So there was going to be a natural reduction in National total harvested.

[HereInTheHeartland]

“Also, a lot of the lost farm land was in Missouri and Nebraska, neither area being a prime producer of quality corn. “

Some of the best cropland in the middle of Iowa is very much affected

[TornadoAlley3]

http://www.nextag.com/bulk-popcorn/search-html

[Iowa Granny]

Indiana and Western Ohio have not suffered the flood losses found elsewhere, and they can easily meet market needs for feed simply by delaying the harvest about 1 week to let the corn develop a little bit more.

Could you explain exactly HOW that works?

[Mr. Lucky]

He can’t be too upset or he would’ve replanted to soy beans. At $15.81 a bushel, he would have to scrape by on, what, a lousy Million Buck income this year, but it can be done.

[Iowa Granny]

Some of the best cropland in the middle of Iowa is very much affected

As well as thousands of Acres along Iowa's Eastern border, along the Mississippi.

I REALLY, REALLY hope there will be enough grain to go around NEXT summer before the 09 harvest comes in. And if Northern Illinois and Indiana can provide it, I applaude them for it.

[Iowa Granny]

He can’t be too upset or he would’ve replanted to soy beans.

If he already had his herbicides applied, he cannot plant soybeans because the herbicides would KILL the beans.