Farms.com Home   News

Severe Drought Hits US Corn Crop, Prompting Price Rally

The United States, the world's largest corn producer, is grappling with a severe drought that has severely impacted crop conditions, driving corn prices upwards. Chicago futures have experienced their most significant surge since early 2022, rising over 12% in four sessions because of heat and prolonged dryness in critical Midwest growing areas. The proportion of the US corn crop rated good to excellent now stands at its lowest level for this time of year since 1992, plummeting to 55%. 

Illinois, the second-largest corn producer in the US, has been particularly affected, with only 36% of the state's crops receiving a good to excellent rating, reflecting a significant drop from the previous week. The situation shows little sign of improvement, with dryness and stress projected to persist across southern, central, and northeastern regions of the corn and soybean belt, according to forecasts by Maxar Technologies Inc. Wheat and soybean futures have also witnessed an upward trend due to weather-related concerns. 

The soaring corn futures for December delivery reached their highest point since November, despite disappointment caused by the Environmental Protection Agency's announcement regarding biofuel quotas. The news prompted a sharp decline in soybean oil futures, while soybean meal prices increased due to anticipated reductions in crushing activity. Market volatility is expected to heighten further with the upcoming release of the US Department of Agriculture's annual acreage report, which will shed light on planted areas. Uncertainty looms as farmers brace for potential yield losses and weather-related challenges until mid-August. 

Source : wisconsinagconnection

Trending Video

Why Seed Analysts are Thriving Under Seeds Canada

Video: Why Seed Analysts are Thriving Under Seeds Canada

Last month in Edmonton, Alta., industry leaders and stakeholders gathered to discuss the evolving landscape of the seed industry at Seeds Canada’s annual conference. Among them was Sarah Foster, president of 2020 Seed Labs and the new vice-president of Seeds Canada.

Foster, who has been on the board of Seeds Canada for over a year, has witnessed firsthand the challenges and opportunities that come with the formation of the organization. Seeds Canada was established just over three years ago through the merger of multiple seed industry groups, including the Commercial Seed Analysts Association of Canada (CSAAC). Since then, the organization has been working to define its priorities and solidify its role in the industry.

“The challenge has been allowing the dust to settle after the merger,” Foster explained. “We’ve been focused on identifying what our priorities should be and ensuring that our members, especially the seed analysts, are getting what they need to continue their professional work.”

One of the recent highlights was a pre-conference event where the three major seed labs in Alberta — 20/20 Seed Labs, SGS Canada and Seed Check — opened their doors to members. The event saw a record number of seed analysts and business professionals in attendance. Foster emphasized the importance of this transparency, stating, “It’s crucial for people to see what goes on behind the scenes. We’re an open book now, and that openness helps build trust and understanding within the industry.”

The event also featured an environmental scan and a series of discussions that fostered strong communication among attendees. According to Foster, the dialogue was both encouraging and inspiring.

“A lot of people were really inspired by the fact that Seeds Canada is moving ahead with its agenda. The seed analysts, who have always worked diligently in the background, are now being recognized more prominently,” she said.

Before the merger, seed analysts were represented by CSAAC. Now, as part of Seeds Canada, they are finding their place within the larger organization. Foster believes that the integration has been successful, noting, “I think we’re thriving. You only need to look south of the border, where similar consolidations are happening.”

As Seeds Canada continues to evolve, Foster remains optimistic about the future. “I want to be totally transparent with anyone who is a seed analyst — I’ve got your back. We’re moving in a positive direction, and we’ll do everything we can to meet the needs of our members,” she said.