Wednesday, July 11, 2012

Illinois, Indiana Corn Continues to Burn

While the Midwest in general is getting hammered by the drought, which continues to devastate the corn crop, Illinois and Indiana are getting hit the worst of all the corn-producing states, with no relief in sight at this time as far as rain coming any time soon.

A little over 1 percent of the crop rating drops daily for every day it doesn't rain in the region.

The USDA gave a dismal report today where it dropped its corn yield estimates by 20 bushels an acre, down to 146 bushels. That was a much larger downward revisement than anticipated, causing the price of corn to jump over 3 percent in morning trading.

As for the corn supply, the USDA lowered its projections by 698 bushels over June's estimates, falling to 1.2 billion bushels at the end of 2012.

That shows how devastatingly quick the numbers are falling, and each day causes some damage to the corn crop in a way rain won't help it recover.

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