Cash Strategist 7/26/2023
The predominate fundamental story in the market right now is weather and its impact on U.S. yields.
There is little doubt that the U.S. corn yield has been reduced, but by how much is hard to predict. While there are several years that are comparable to this one, advancements in genetics and farming practices have likely buffered loss potential.
Most analysts expect that the U.S. has lost 500 million bushels of corn production due to drought conditions. While this is possible, even with this loss, the U.S. would still see its ending stocks increase 305 million bushels from last year.
It is also likely that the higher futures that have followed production losses will trim demand, which was already suspect to begin with. It isn't out of the question that the U.S. could lose a sizable volume of...
Members Only Content
Join Iowa Farm Bureau or login to view all members only content and receive other member benefits.