The corn market today is responding to another threat of frost in long-range weather forecasts, Doane Advisory Service economist Marty Foreman tells Drovers and food360 editors. A week ago, National Weather Service forecast models suggested a possibility of frost over much of the
Concerns over early frost are driving corn futures higher today, as much of the crop has not reached maturity. This week’s Crop Progress report shows 21 percent of the U.S corn crop at maturity as of Sept 20, up from 12 percent a week ago, but well below the year-ago figure of 30 percent and the previous five-year average of 55 percent. In
Cattle futures continue to struggle, Foreman says, with Oct. and Dec. contracts at seven-month lows. The cash market has been flat to slightly down, but tight supplies of market-ready cattle continue to suggest cash prices should improve into the upper $80s during Oct. and Nov. Beyond this fall, the increase in feedyard placements over the past few months, particularly of heavy-weight cattle, could mean growing supplies and beef production, pressuring prices back into the lower $80s during the first quarter of 2010.