Weather conditions have allowed corn development and the corn harvest to advance across the U.S. in the past week, with the exception of South Carolina and the Mid-Atlantic region, which were affected by rains from Hurricane Joaquin, according to this week's Monday Mycotoxin Report from Neogen.
Hurricane Joaquin brought torrential and record-breaking rain to South Carolina, and the Mid-Atlantic region also received rain. Corn harvest in these regions is delayed, which will have a negative effect on corn that is still in the fields.
Across the country, 27 percent of corn has been harvested, compared with 32 percent for the five-year average. Iowa is 9 percent behind normal, Minnesota and South Dakota are 10 percent behind normal, and Wisconsin is 7 percent behind normal.
The October 6 U.S. Department of Agriculture crop report shows corn in the fully mature stage has advanced across the country to 86 percent compared with 83 percent for the five-year average. Corn development is 11 percent behind normal in Texas, 10 percent behind normal in Michigan, and 9 percent behind normal in Wisconsin.
Richard Brock of Brock Associates said corn yields in northern states are offsetting much lower corn yields in southern states, particularly Indiana, Ohio and Missouri.
He added that ethanol exports have dropped off and imports have increased. This is primarily caused by much cheaper sugar prices in South America, which resulted in the Brazilian government shifting from exporting sugar to processing it into sugar-based ethanol and flooding many countries with cheaper ethanol prices.
Brock said world carryover corn supplies will be slightly lower than they were a year ago, which will put a bottom in the corn market.
“While we don’t expect the market to be significantly higher, the downside risk is now limited and this will result in increased corn acres from U.S. farmers in the spring of 2016,” Brock said.