Eastern
Corn Belt Experiencing Drought; Western Corn Belt in Good Shape
(7-8-05)
Dry and hot weather in the east-central portion of the Corn Belt
have forced bushel estimates lower and sent corn futures higher
on the Chicago Board of Trade (CBT) this past week, the National
Corn Growers Association (NCGA) notes.
According to The ProExporter Network (PRX), nearly
half of Illinois is in a state of severe drought. Several other
areas are experiencing severe drought as well: the southern tip
of Texas, southwestern Arkansas and the Upper Peninsula of Michigan.
Parts of Texas, Arkansas, Missouri, Illinois, Indiana, Michigan,
Ohio, Oklahoma, Virginia, West Virginia, Wisconsin, Maryland and
Pennsylvania are in near-severe droughts.
Meanwhile, all of North Dakota and parts of Florida,
Georgia, Minnesota, Montana, Nebraska and South Dakota have received
more than enough rain.
“Illinois has been one of the hardest hit
by the dry weather,” said Max Starbuck, NCGA director of livestock
and economic analysis. “They’re looking at roughly 126
bushels per acre, which is about the same as their last really dry
year, 1995 to 1996.”
“We’re pollinating right now, so it’s
certainly a critical time,” said Leon Corzine, NCGA president
and an Illinois grower.
PRX expects only four Corn Belt states to harvest
more bushels in 2005 than in 2004: Colorado, Nebraska, North Dakota
and Wisconsin.
“The western Corn Belt looks to be in pretty
good shape,” Starbuck said. “In some areas, the forecasts
are better than normal. Nebraska growers have received a lot of
rain, which is a little unusual for them.”
Earlier this week, corn futures rose 6.5 percent
on the CBT on the assumption that the dry and hot weather will damage
the crop. Futures for December delivery rose to $2.51 per bushel.
However, on Friday, prices dropped on speculation
that Hurricane Dennis may take a westerly path up the Mississippi
River Valley after landfall on the Gulf Coast to deliver much-needed
rain.
“There appears to be moisture on the way from
the system in the Gulf,” Starbuck said. “The question
is: How far west will it go?”