CME: Livestock Producers Face Prospects of $8 Corn

Good weather conditions have allowed the current corn crop to improve at a much faster pace than previously expected and we have started seeing private forecasts that now have corn yields above the $150 bushel market, maybe as high as $155-56 bushels per acre. Topsoil moisture in much of the corn belt appears to be in great shape and with no significant dry weather patterns expected in the near future, corn prices have been under significant pressure recently. However, the market found some support in the USDA announcement that it would not allow an early release of acres that are currently enrolled in the Conservation Reserve Program (CRP). After the June floods in Iowa and Illinois, USDA was urged to grant an early release of CRP acres in order to mitigate the flooding impact and provide relief for livestock and poultry producers facing prospects of $8 corn, as indicated in futures markets.

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