Farmers are trying at harvesting as fast as they can before the snow arrives. There is snow in the forecast for many places in the Midwest this week.
Currently, an arctic blast is hitting portions of the Southern Plains and Midwest. Temperatures are expected to plunge up to 40 degrees below average. The cold air blast is also bringing snow with it. That forecast is not what farmers want to see.
Some analysts say the damage has already been done in places, with a hard frost earlier in the month.
“We brought the growing season virtually to an end West of the Mississippi and in the Midwest,” says Arlan Suderman of INTL FC Stone. “We really brought it to an early end just like we did in 2009.”
Suderman expects this to mean wide-spread wet corn with low test weights and lower oil content in soybeans as well.
“Worst case scenario, we could be looking at 30 to 50 million bushels of soybeans coming off just from the freeze and up to 700 million bushels of corn,” says Suderman.
Suderman’s number doesn’t factor in if farmers see harvest losses in the field from the snow.
This upcoming forecast is something traders, farmers and agribusinesses will watch to see what happens with price, crop conditions and harvest for many areas in the United States. China could also be a wild card, as talks between the U.S. and China continue with a potential phase one trade deal.