Marketing
Impacts of Derecho Storm on Corn Crop
A poll of FBN members on Friday confirms what satellite data is starting to show regarding the crop damage from the derecho wind storm on August 10th. The high-impact area was concentrated in Central/Eastern IA, but it is not a geographically large enough region to likely add to significant market-impactful losses
We gauge losses at around ~100 MB on the corn crop which would reduce U.S yield by about 1.4 bushels per acre. Not enough to likely keep the market sharply higher, but good enough to keep prices from returning to the lows.
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my estimate is that about 4 million acres of Iowa corn have been affected by the derecho with about 1 million acres having 80+% damages. Probably another million acres with 50% downed corn, which will reduce yield by 15-20%. and then 2 million acres with average impact of 10% loss. Total Iowa corn loss = 1,000,000200.9 + 1,000,000200.2 +2,000,000200.1 = 180+40+40 = 260 million bu lost production compared to August report.
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