If you have not been following the flooding in the midwest over the weekend, the story is below. Corn was in trouble before this weekend. You had the coolest and wettest spring planting season in the corn belt since 1995. Farmers were well behind normal in plantings. There is essentially no chance for second plantings. Then you add the flooding this weekend and the corn crop has major problems. Right now in electronic trading corn is up 3%. Soybeans which hypothetically was supposed to benefit from the cool weather because it can be planted later and farmers would switch from corn to soybeans is also up 2% after a powerful rally in the last month.
Can things get worse? Everything at once is bearing down on America pushing us toward severe economic times.
Wicked weekend storms pounded the country from the Midwest to the East Coast, forcing hundreds of people to flee flooded communities, spawning tornadoes that tore up houses and killing at least eight people.
Corn jumped to a record as excessive rains in the U.S. Midwest may reduce crops, and soaring oil costs and the dollar's drop boosted demand for commodities as an alternative investment. Soybeans, wheat and rice also gained.
About 74 percent of U.S. corn seeds had emerged in the top 18 producing states, down from 92 percent a year earlier and the previous five-year average of 89 percent, the U.S. Department of Agriculture said in a report June 2. The USDA is to update its weekly crop condition ratings later today.
Soybeans were 69 percent planted as of June 1, compared with 52 percent a week earlier and the five-year average of 81 percent, the USDA said. About 32 percent of the crop had emerged from the ground, compared with 64 percent a year earlier.
More than 4 million acres remained to be planted with corn and 23 million acres awaited soybean seeds on June 1, the USDA said last week. Corn and soybeans planted in wet, cool soils develop shallow roots, increasing the threat of damage from hot, dry weather in July and August.