The Rural Voice, 2002-08, Page 51•
1
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48 THE RURAL VOICE
Grain Markets
The drought has
begun — sort of
Dave Gordon
is a
commodities
specialist
with LAC,
Inc., Hyde
Park, 519-
473-9333.
By Dave Gordon
Well, the drought has begun –
well, sort of. Not all areas of the U.S.
are dry, as some parts of Iowa and
Minnesota have received too much
rain. The eastern Corn Belt, which
bore the brunt of spring rains, is now
getting too dry in areas. In fact, 50
counties in Michigan have been
declared disaster areas and are now
eligible for federal disaster loans —
and their crops actually look better
than our crops in Ontario!
In Ontario, there are some areas
where crops are showing extreme
stress with very little relief in sight. It
seems that no two weather services
can agree on temperature or rainfall
forecasts and the markets are
becoming volatile.
CORN:
The USDA issued their monthly
supply/demand report on July 11 and
although it had some immediate
negative effect, most traders believe
the planted acreage figures used are
off target by one million acres. Will
the drought in the northern parts of
Ohio, Indiana, Illinois and Michigan
offset a potential record yield in
Iowa? Only time will tell but keep in
mind that the eastern Corn Belt was
planted late and does not have much
a root system. As of this date, the 6-
10 day weather forecast once again
shows below normal rainfall for the
eastern belt and above normal in
Iowa. We are in a weather market
even though it cannot be called a full-
blown drought.
In Ontario, there are areas such as
the southwest, the Niagara area and
parts of eastern Ontario that have not
seen measurable rain for a month. It
appears to be a repeat of last year and