July 2022 Market Briefing: Region 2
Greetings from the Eastern corn belt! The heat we received early in the season has plants up and growing. However, irrigators have been running, where available, as Indiana and Ohio have been dry. Signs of stress are visible, and farmers are saying corn is rolling up and needs moisture. Producers are concerned about what this might do to beginning ear development prior to pollination. The later planting start may push pollination back a week or two allowing for moisture to develop. Higher temperatures can also allow for greater possibility of pests and disease.
Condition scores for 6/27/22 showed an 11% decline in GTE for Indiana, a 9% decline in Ohio, and a 24% decline in Kentucky. The national average is 67% GTE better than 64% last year, on a crop we thought looked pretty good. We will continue to monitor weather patterns and keep you posted in our communications.
The good news is spot basis is still strong. If you see a fall basis that looks average or above, it may be a good idea to take a little risk off the table.
Hats off to Kevin McNew, Chief Economist at FBN®, and his team for their excellent work and analysis on the acreage report. The results were directionally in line with the USDA numbers. Thanks to all of you who participated, as the data is from you and the results are for you.
Check out these upcoming events in our region. For more details click here.
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