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Drought
Crop Update: From Harsh Expectations To Harsher Reality
28
August, 2012
Droughts
tend to produce vast yield variations. This week's ProFramer crop
tour reaffirmed this tendency and as UBS notes, conditions declined
with the expectations of low
yields compounded by the harsher reality of poor quality -
likely to be a major issue for corn feeders. Interestingly, Soybeans
looked good from the road but up close (pod formation and beans/pod)
were well below normal; and UBS adds to forget
the CME for the moment - the cash market is now the attention
grabber as
they expect it to lead this rally in Ags higher - especially the July
2013s, raising an interesting question of if
(or when) the US will restrict exports? Especially
with no let-up in the drought conditions.
Lower
yields AND lower quality...
With
Corn and Soybean conditions data just awful...
and
its not getting better anytime soon...
Charts:
NOAA and UBS
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