Corn Farmers Have Done Their Job;
Posted: June 30, 2009
Just another 12 billion bushel crop? It seems to be getting to be a familiar story. Poor planting conditions result in late planting for a significant part of the corn belt, followed by plenty of corn to do business as usual. For the folks that make their money second guessing the crop and hoping for wild gyrations in price and supply this is shaping up to be another example of modern corn productivity.
The June 30 Acreage Report from USDA NASS estimated corn area planted at 87.0 million acres and soybeans at 77.5, for a combined total of 164.5 million acres.The corn area was above market expectations by 2 to 3 million acres. Few anticipated this because of another rocky, wet planting season in a few critical areas.
After the last few years people should be catching on to several things:
1. Farmers are a patient lot, capable of herculean bouts of sustained work…and yes, they have large and modern equipment.
2. Modern seed technology has changed the rules of crop production making it capable of withstanding later planting and the vagaries of weather and insect onslaughts like never before.
3. Farmers love to plant corn. They like the planting and harvesting process itself, the multiple marketing possibilities offered by food, feed, fuel, and other industrial uses.
Granted, many farmers will have a tough year and the crop is not in the bin but with a prospect of a 1.45 billion carryoverthe picture looks a whole lot brighter.
