Dry weather causes swing in ag market

John Leighty of the Truepoine Cooperative spoke at July’s Auglaize OSU extension Ag breakfast, particularly about how dry weather has been causing volatility in the agriculture market.

Ohio was rated 75 percent good-to-excellent for

corn quality. Iowa, on the other hand, was rated

at 68 percent good to excellent quality, the Dakotas had about 29-30 percent excellent quality and Minnesota has 42 percent excellent quality.

The volatile market may be relying on corn and soybeans in Ohio while the Dakotas that are burning up under the heat.

“That’s why we are seeing what we are seeing right now,” Leighty said.

Equaly important as the weather is whether the eastern half of the country can offset the problems out west.

“The question is will the eastern corn belts crop offset the problems out west,” he said.

He said the eastern corn belt has good potential. He said dry forecasts are still affecting volatility in the bean market.

“That’s the tension in the market right now, that’s the arguing point every single day,” he said.

Corn historically has hovered around $4/bushel but is now at about $5.50/bushel.

“I see no weak places in this corn crop,” Leighty said.

He was confident for the near future the price will remain above $5.

It’s not just North America that’s feeling the heat. Brazils corn crop has also suffered, and

Leighty said it was put out late and affected by dry and freezing conditions. Those conditions in turn reduced the yield.

“I have never seen a year with these type of prices, where we have something to sell, Leighty said.

But it wasn’t all good news.

Ohio scored lower in bean production, with a decrease to 67 percent excellent from 75 percent.

He also reviewed July supply-and-demand numbers.

He said China has purchased a ton of corn this year but whether they will buy as much next year is unknown.

Overall, Leighty stressed the importance of dry

weather in the area, as that would be good for farmers in the area who could then increase the prices of corn and beans.

“We could see a multi-dollar swing in either direction,” Leighty said of the harvest this year.