"We've Given Up the Idea of $3.25 Corn this Fall"

Markets and Slow Planting
Flooding Sand Bags ( Flooding Sand Bags )

Planting is historically behind and markets are trying to incentivize farmers to put something in the ground for 2019. 

Mark Feight with the International Agribusiness Group, talked to AgDay's Clinton Griffiths about planting and the search for something to compare it with from previous years.

"This is the latest that we've ever had and we're trying to model it," says Feight. "History just doesn't work and we're trying to guess as best we can."

He says despite the challenges of wet weather, it's the market's job to make sure that we've got a limited number of prevented plant acres.

"That's the good news that the market is responding and being sensitive," says Feight. "It looks like it's about 25 to 30 cents a week for every delay."

Feight says the other issue is yield drag and how big of a hit production can handle. 

"What we think is that we can give up 2 billion bushels of corn production," says Feight. "The first billion was too much anyway and what we've given up so far is the idea that we'll see $3.25 corn this fall."

He says the second billion bushels of corn production is where the impacts will begin.

"I think we can give up [a billion] and still keep carry out in the U.S. at about a billion," says Feight.  "It has to pinch the usage a little bit, but we have enough [corn] from other places in the world."

He includes the weather-battered wheat crop which he expects to find its way into feed rations.