High Crop Moisture Levels and Falling Prices
By Colin McNaughton
Farms.com Risk Management Intern
U.S. farmers are grappling with high moisture levels in their corn crops. Despite a prolonged dry spell for many over the last 30 days or so, corn crops are refusing to dry down, leaving farmers with a difficult decision: wait for conditions to improve or incur the cost of drying in a market plagued by falling prices. In this article, we'll explore the current situation in the US corn industry, the factors contributing to high moisture levels, and the economic implications for farmers.
Slow Progress in Corn Harvest: According to USDA’s Crop Progress update for October 1st, 2023, only 23% of the US corn harvest has been completed. While this figure is slightly ahead of the five-year average of 21%, it falls short of the expected 25%. This lag in progress can be attributed to the high moisture content of the corn crop, which is delaying harvest.
Despite the dry conditions in recent weeks, corn crops in many regions are still registering moisture levels in the mid-20% and as high as 30% (or more) in some cases. This presents a significant challenge for farmers who are hesitant to incur additional costs for drying their corn. With corn prices being lower than what many farmers expected, the prospect of spending more money and energy is not a welcome one for struggling farmers.
Soybean harvest faces similar challenges. It's not just corn that's seeing a slowing in the harvest. The US soybean harvest is also slightly behind schedule, with only 23% complete, as opposed to the expected 25%. Farmers who are racing against the clock and unfavorable market conditions.
Crop maturity though is advancing faster than the recent years’ trend. 82% of corn and 86% of soybeans are mature, which is ahead of both last year's figures and the five-year averages.
The weather forecast presents a mixed bag of hope and challenges. A strong cold front is expected to move east across the U.S. in the immediate-term, bringing the possibility of frost to the Northern Plains and Upper Midwest. There are also rains and thunderstorms in the forecast. Most areas should see some light rain that could further delay the harvest process. However, the cold will not last long as forecasts show temperatures rising later in the week, potentially giving farmers a window to harvest their crop, or at least assist in getting conditions closer to ideal.