Even though harvest weather has improved dramatically over the past week, the string of delays prior to this week has been unprecedented. That’s generated questions about shortages for grain end users.
“The real answer to that is that we’ve managed to creep along and
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harvest some crop as we’ve moved along particularly with regard to soybeans and corn,” says Jerry Norton, a grains analyst with USDA, in an interview provided by the agency.
AUDIO: Jerry Norton (1 min. MP3)
So far, there have been no significant shortages, according to Norton.
“With corn, we came into the year with some fairly good carry-in, so that’s helped ease the problem in the pipelines,” says Norton. “You have seen, though, that there’s some tightness in the pipelines, because we’ve had fairly strong cash prices relative to futures; a good basis for producers out there.”
Norton says there have been effects seen from higher market prices.
“We’ve seen some weakness in our export demand, particularly for corn and wheat,” he says, “which has slowed the need to move as much grain as we might sometimes move to the market.”
The better harvest weather, predicted to extend into the next several days, should pump more grain into the pipeline, although lingering maturity issues persist in some areas.
“Soybeans just a week or two ago were having trouble reaching maturity in some of these areas and hopefully this warmer, at least dryer weather will help to add to the maturity advances,” says Norton.
“With the weather looking better this week, it’s a good sign.”
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