Thursday, December 10, 2009

Corn Futures Prices Rise as Harvest Delayed

Corn Futures

With millions of bushels of corn still in the fields waiting to be harvested, and unsurety as to when that could happen, as wet fields and drying capacities as grain elevators hamper the process. Approximately 10 million acres of corn remain in the field, equal to about 1.5 billion bushels of corn. Corn futures have risen in price in response to the dilemna.

To give an idea of how much corn remains in the field, you have to look at several states. For example, Nebraska is in fairly good shape, as it has harvested 88 percent of all corn planted this year. Sout Dakota hasn't fared as well, as they have only been able to bring in 73 percent of their corn, while North Dakota is a disaster, as it has only been able to bring in 53 percent of corn in the fields at this time.

Some in the agriculture industry say it may not be until 2010 before the corn is harvested.

Consequently, corn future prices could continue to receive support until this is all worked out, if indeed it can be worked out. There could be significant loss going forward.

According to the USDA, the ending supply of corn at the end of 2009-2010 marketing year should come in at 1.675 billion bushels.

All the major grains, corn, wheat and soybeans are projected to be higher than projected, which will result in downward pressure on prices in the year ahead for the grain commodities.

Corn Futures

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