The corn market has been on a wild ride since June 5, with prices plummeting 50 cents at one-point last week. July corn futures experienced a range of 72 1/2 cents within a little over three weeks, hitting a low of $5.51 1/4 on May 19 and reaching a high of $6.23 3/4 on June 12. Volatility reminiscent of years past has traders, commercials, speculators, and farmers on edge.
While the market reacted to both bearish and bullish fundamentals, it has primarily focused on the spreading drought in the Midwest. Traders thrive on the fear of poor crop conditions, which has pushed prices higher.
The USDA's recent WASDE report presented a mixed bag of news. Poor exports and increased carryout estimates contributed to the market's unease. Ending stocks for the current crop year are expected to rise from 1.417 billion to 1.452 billion bushels, with a slight increase projected for the following year. World carryout estimates also saw an uptick.
In Ohio, farmers are feeling the effects of the drought, but recent showers offer some relief. While crop conditions appear relatively stable, the dry spell continues to pose a threat. The market remains weather-driven despite the USDA's predictions of increased carryout.
Soybean exports remain steady, though new crop sales outweigh old. Attention turns to South America's harvest, with Argentina lagging and Brazil making up for the deficit with a record crop. Wheat markets, led by Chicago, gained ground due to poor bread crop conditions and a thriving cookie crop. Reports also highlight Ukraine's struggles with hot and dry weather affecting yield.
Overall, Ohio farmers closely monitor the weather as they strive to overcome the challenges posed by drought conditions, aiming to secure a successful crop season.
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Categories: Ohio, Crops, Corn, Weather