- Drought conditions will persist in much of the Corn Belt and Great Plains states through November, the National Oceanic and Atmospheric Administration said August 16th in a report. Lower temperatures and rain forecast for parts of the Mideast won’t be enough to snap the drought that has pushed crop prices up for months, said Joel Widenor, co-found of Commodity Weather Group LLC in Bethesda, Maryland, this week.
- The USDA in a monthly report on Aug. 10 forecast a corn crop of 10,799 billion bushels, down 13 percent from 20111. The soybean harvest was pegged at 2,692 billion bushels, 12 percent smaller than last year. The harvests get under way next month.
- Jose Graziano de Silva, director-general of the UN’s Food and Agriculture Organization, last week called for a suspension of U.S. ethanol-use rules to let more corn be used for food and livestock feed. Jay Carney, White House press secretary, in Iowa last week told reporters that the USDA and EPA will be evaluating data to determine what should be done about requests for waivers from state officials and more than 175 members of Congress.
- Because of tight feed supplies and resulting higher costs, producers may cut back on ration quality and cows will make fewer pounds of milk per day. The net result will be fewer cows, less milk per cow, less total milk and higher milk prices. However, in order for higher milk prices to help, dairies have to hang on until they arrive. Some forecasters, see dairies running out of feed and, being unable to borrow more from lenders, being forced out of business.
(T1, D1)
