Continued dry weather has put a damper on the growing season.
Nearly all of Iowa, Illinois and Missouri reside in some form of drought, according to the July 27 U.S. Drought Monitor. That has raised questions as to what prices will look like come harvest time and the best way to sell the rest of the crop.
“I talked to an Iowa client (in late July) who said he can’t sell any more corn at this point because ‘I don’t know what I’m going to have,’” said Mike Zuzolo of Global Commodity Analytics. “It’s very hard for me to expect we will reach last year’s yield number in corn. We may not even get better than 2019.”
Zuzolo said according to data he’s seen, the Corn Belt is in nearly the same stress index as it was at this point last year. But with drought being cumulative, it is likely to take a toll on many areas.
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