Some significant drops in USDA’s expected corn and soybean yields due to the drought have been the talk of the recent Wyffels Hybrids Corn Strategies event. “USDA took 20 bushels off of its yield, end of July, and dropping the soybean yield down to 40 and a half bushels… that makes a huge statement, and USDA probably thinks it’s smaller than that,” said Arlan Suderman, Market Analyst, Farm Futures Magazine. He talked about corn prices during the event, and in an interview with Chuck, said that big of a drop in yields will mean a lot… once the funds traders start looking at the corn market. “They’re still more worried about Europe, and so if they were to happen to come in, we could drive prices much higher than what’s justified.”
Suderman said we’re not at the same level of drought widespread as in 1988. But he cautions that if we do hit that level, it could cause some real problems in the corn market. He’s got some great tips on how to marginalize risks in the complete interview with Chuck here: Interview with Arlan Suderman, Market Analyst, Farm Futures Magazine