Denny said:agman said:0CattleCo said:Just reported 55% of Illinois Corn and Soybeans in poor condition.......maybe $3.00+ Corn is coming sooner than we think!
Illinois produces approximately 20% of the nations corn. Conditions in Illinois are similar but not nearly as severe as in 1988 when their corn yields declined 50% and their bean yields declined 30%. Additionally, the balance of the country has experienced conditions much less severe than in 1988.
The market has built in a 10.3 corn crop at current prices. Such a crop would reduce the carryout from 2.14 billion bushels to approximately 1.6 billion bushels.
Some traders are beginning to talk of the possibility of yields as low as 136 bushels per acre which would equate to a 10.0 billion bushel crop. Even a crop of that size would allow ending stocks at the end of the new marketing year to be at 1.3 billion bushels. At that ending stocks level the December corn futures would be hard pressed to exceed $2.83 per bushel.
Question ?How will that affect feeder cattle prices?