Could the High Heat Cause Corn Prices to Repeat 1988 and 2012 Levels?

 

By Tyne Morgan, FarmJournal's Pork 

June 17, 2022

 

Even with the Federal Reserve raising interest rates, the high heat seemed to be the focus of the markets the second half of the week. Two veteran market analysts say if this heat continues, and drought becomes an even larger concern, commodities could see a dramatic run-up in prices.

 

According to Pro Farmer’s Jim Wiesemeyer, the U.S. saw more than 1,850 heat records broken just in the past seven days. A ridge of high pressure is the what’s driving the heat. USDA meteorologist Brad Rippey says while the ridge of high pressure is parked over the country, it has been shape shifting the past few days. 

 

“This year it does appear we have a rather intense ridge of high pressure,” says Rippey.

 

While the high heat was potentially impacting grain production farther south in areas where the corn was silking, Rippey says it will be key to watch where that ridge sits a month from now, along with its level of intensity. 

 

“As you remember, 50% of U.S. corn was planted in a two-week period in May, and almost two-thirds of the corn was planted in a three-week period. So a lot of that corn went in all at once, especially in the Midwest,” he says...

 

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