Corn Market Commentary

Chuck Zimmerman

Corn growers got the world market viewpoint today at the Wyffels Hybrids Corn Strategies from Bill Tierney, Chief Economist, AgResource Company. I spoke with him after his presentation. China was a market he spoke about and I was fascinated to learn that the average holding of corn there is about 10-12 feet wide by about 60-100 feet! Bill says, “When you have such a small level of production which contributes very little to farm income the incentive to make investments in yield enhancing technology, better seed, better fertilizer, just isn’t there.” As he puts it, “Farming’s not big business in China.”

I asked him about the current domestic corn crop situation in light of today’s USDA World Agricultural Supply and Demand Estimate. He says that although USDA’s average corn yield estimate was lower than market expectations it was relatively close to models his company follows. He says that with the weather we’ve been having and the direction the corn crop is going those estimates will be even lower. He thinks USDA did their job right on this estimate.

Bill says the highs we’ll see in the market will probably come in the next two to four weeks, “It will probably come when the market feels confident that the damage to the crop has stopped.” He doesn’t think the market feels that way yet. He says they think this will be a multi year high. Listen to my interview with Bill to get more of his thoughts and a recommendation for growers to consider: Interview with Bill Tierney

2012 Wyffels Hybrids Corn Strategies Photo Album

Agribusiness, Audio, Corn

House Committee Considers Farm Bill Amendments

John Davis

Last month, we told you about how the U.S. Senate had trimmed the number of amendments in the Senate Agriculture Reform, Food, and Jobs Act of 2012, better known as the Farm Bill, from 300 down to 73. Today, the debate moved to the House, as the House Agriculture Committee was adding and subtracting the lower chamber’s own amendments (about 100 so far) to the overall legislation, which members there have named the Federal Agriculture Reform and Risk Management Act or FARRM.

The first amendment to come up would have made major changes to the dairy program and eliminated the market stabilization program for milk pricing in the current Senate version of the Farm Bill. Reps. Bob Goodlatte (R-Virginia) and David Scott (D-Georgia) proposed a safety net for dairy producers without requiring them to participate in a supply management program.

Goodlatte argued that their amendment is more in line with the overall Farm Bill making its way through Congress and would actually provide more support for smaller family dairy farms. Scott, the co-sponsor on the amendment, said the main point is that it would keep milk and dairy products affordable for consumers. “The stabilization program that our amendment would take out would artificially reduce the supply of milk throughout this country, thereby, increasing milk and dairy product prices for consumers,” he said, adding that economic times are too tough to do this. Read More

Audio, Dairy, Farm Bill

Developing Corn Hybrids For Adverse Conditions

Chuck Zimmerman

It is the 6th year for the Wyffels Hybrids Corn Strategies road show. We’re sitting in a comfortable tent in a corn field. Can’t find a better place to hold a conference like this.

I visited with Bill Wyffels, President, to find out what’s new from Wyffels. He says they’ve introduced thirteen new corn hybrids from 96 to 117 day relative maturity and numerous products that have all the refuge built into the seed bag. Bill says they make sure they’ve got the best genetics for farmers to choose from to help them during challenging growing conditions like we’ve seen again this year in the corn belt. He says that for years they’ve been developing hybrid technology that allows plants to better withstand adverse conditions.

Listen to my interview with Bill here: Interview with Bill Wyffels

2012 Wyffels Hybrids Corn Strategies Photo Album

Agribusiness, Corn

Kansas Wins Race to Sell 15% Ethanol

Cindy Zimmerman

Kansas wins the prize for the first state to sell 15% ethanol-blended gasoline (E15) under the Environmental Protection Agency waiver.

The nation’s first E15 gallons were pumped at the Zarco 66 “Oasis” station in Lawrence, Kansas on Tuesday and, not coincidentally, the first customer to buy it was Jere White, Executive Director of the Kansas Corn Commission. “We were there when the last sticker went on,” said White. “We wanted to be there to pump the first gallons into a non-flex-fuel car under the waiver.” White fueled up a 2010 Chevy Camaro with E15 priced two cents a gallon less than E10.

Listen to interview with White here: Jere White with KS Corn Commission

Scott Zaremba is owner of Zarco 66 stations and pleased to be the first to offer consumers real choice at the pump in the form of E15 ethanol fuel. “We just whole-heartedly believe that alternatives are what we need to be moving toward to lessen our dependence on foreign oil and also being able to have cleaner burning product,” said Zaremba. He is offering the E15 as one of the choices at the station’s blender pump, which was one of the first installed in the state in 2008.

Zaremba also plans to offer E15 at a second Zarco 66 in Ottawa, and an announcement on that is expected soon. A formal grand opening for the pumps is planned for Wednesday, July 18.

Listen to interview with Zaremba here: Zarco CEO Scott Zaremba

It has been just over a month since the EPA gave final approval for the sale and use of E15 ethanol blends in light duty vehicles made since 2001, and over three years since the waiver was first requested.

Uncategorized

Wyffels Hybrids Does 2012 Corn Strategies

Chuck Zimmerman

Wyffels Hybrids is kicking off a series of Corn Strategies sessions this year in Vincent, IA. Here’s the team this morning getting ready for the tent capacity filled crowd that’s here on Harmon Farms. What a contrast I’ve seen in corn yesterday to today. The corn here looks great. Although I’m sure there are local farmers here who would like it to be even better. The corn in north central Illinois I saw yesterday was pretty well “toast.”

We’ve got a strong program taking place in a nicely air conditioned tent that includes speakers like Dr. Michael Swanson, Chief Economist, Wells Fargo; Arlan Suderman, Market Analyst, Farm Futures Magazine; Bill Tierney, Chief Economist, AgResource Comapny and one of my favorites, Dr. Fred Below, University of Illinois. I’ll have lots of interviews to share in coming days.

You can find photos from today’s event here: 2012 Wyffels Hybrids Corn Strategies Photo Album. I’ll add a lot more later today when I get to some better internet access although it’s pretty good using my Verizon Razr out here in a corn field!

Agribusiness, Corn

Weather Taking Toll on Crops

Cindy Zimmerman

This is what the corn looked like near Bloomington, Illinois yesterday – and it looks much worse in other areas.

The USDA World Agricultural Supply and Demand Estimate report out this morning did, as expected, lower corn yields as a result of the hot and dry conditions throughout much of the growing region this summer. “Dreadful,” said USDA Outlook Board Chairman Gerry Bange earlier this week as they were working to come up with the estimates. “There’s no other way to describe this other than just horrible.”

The projected U.S. corn yield was lowered 20 bushels per acre to 146 bushels reflecting the rapid decline in crop conditions since early June and based on that and reduced harvested area based on the June 29 Acreage report, WASDE reduced corn production prospects by 1.8 billion bushels from last month. “Persistent and extreme June dryness across the central and eastern Corn Belt and extreme late June and early July heat from the central Plains to the Ohio River Valley have substantially lowered yield prospects across most of the major growing regions,” the report says.

Soybeans are getting hit as well. WASDE is now projecting soybean production at 3.050 billion bushels, down 155 million as increased harvested area is more than offset by reduced yields. Harvested area, estimated at 75.3 million acres in the June 29 Acreage report, is 2.3 million above the June projection. The soybean yield is projected at 40.5 bushels per acre, down 3.4 bushels from last month.

Corn, Soybean, USDA

Most Are Negative About Obamacare

Melissa Sandfort

Our latest ZimmPoll asked the question, ” How will Obamacare affect you and your business?”

Our poll results: Sixty percent said negatively; thirty percent said positively; five percent said not at all and the remaining five percent didn’t know.

Our new ZimmPoll is now live and asks the question, ” How worried are you about the weather impact on crops this summer?” The worst U.S. drought since Ronald Reagan was president is withering the Midwest’s corn crop. The condition on July 1 was the worst since the drought of 1988. What do you think – will the rest of the summer bring relief or are the crops in trouble?

ZimmPoll is sponsored by Rhea+Kaiser, a full-service advertising/public relations agency.

ZimmPoll

Zimfo Bytes

Melissa Sandfort

    Zimfo Bytes

  • AgWeb recently introduced “2012 Pest Watch,” a section focused on readying farmers with the tools and awareness they need to combat this year’s crop of insects.
  • Bayer CropScience announced that it has signed an agreement to purchase AgraQuest, Inc. for a purchase price of $425 million plus milestone payments.
  • The U.S. Wheat Associates Board of Directors installed new officers at its annual meeting.
  • Fifteen Iowa soybean farmers have stepped forward as volunteer spokespeople on the Iowa Soybean Association’s Farm and Food Ambassador team.
    Zimfo Bytes

    Controlled Release Nitrogen on Corn

    Chuck Zimmerman

    The Indian Creek Watershed Project Field Tour stopped at Herb Steffen’s farm again this year. At his farm we received presentations on the use of controlled release nitrogen on corn that according to Herb includes our sponsor’s products – AGROTAIN!

    Herb says he and his family have farmed in the area since 1863 so you know these people really take care of their land. We talked about the dry weather which is some of the worst he’s seen. He says that even if it rains now it won’t help the corn but perhaps the soybeans. The corn has very little root system so let’s hope he doesn’t get much wind! He says they’re working with several companies on the controlled nitrogen release project. He says that last year it was too wet and this year it’s too dry. He thinks it is hard to get enough good data on the results yet. Maybe he’ll have a “normal” year next year.

    Listen to my interview with Herb here: Interview with Herb Steffen

    You can find my photos from today’s field tour here: 2012 Indian Creek Watershed Project Field Tour Photo Album

    AgWired coverage of the CTIC Indian Creek Watershed Field Tour is sponsored by AGROTAIN
    Ag Groups, Audio, Conservation, Corn, CTIC, Farming

    Preview of Indian Creek Watershed Field Tour

    Chuck Zimmerman

    The 2012 CTIC Indian Creek Watershed Project Field Tour is about to kick off in sunny Illinois. I spoke with CTIC Executive Director Karen Scanlon this morning to get a preview of the project and our tour. Internet access and time is limited today since we’re on a farm tour but I’ll be collecting stories and interviews to share in the coming days. Thank you to AGROTAIN once again for sponsoring my coverage of the tour!

    Get a preview of the tour in my interview with Karen here: Interview with Karen Scanlon AgWired coverage of the CTIC Indian Creek Watershed Field Tour is sponsored by AGROTAIN

    Ag Groups, Audio, Conservation