Nefesh Achas

The streamlined disaster designation process with lower emergency loan rates and greater CRP flexibility in disaster areas will help producers suffering effects of extreme weather. The Secretary of Agriculture is authorized to designate disaster counties to make disaster assistance programs available to farmers and ranchers. A natural disaster designation makes all qualified farm operators in the designated areas eligible for low interest emergency loans.

its serious!

Corn jumps 2 percent as USDA slashes yield, production
* Soybeans gain more than 1 percent, wheat adds 1-1/2
percent
* USDA cuts corn yield view by 20 bushels per acre, soy by
3.4

By Karl Plume
CHICAGO, July 11 (Reuters) – Corn surged more than 2 percent
on Wednesday after the U.S. government slashed its production
estimate by 12 percent as the worst drought in nearly 25 years
took a heavy toll on the crop in the world’s top producer of the
grain.
The U.S. Department of Agriculture cutting the U.S. corn
yield by a whopping 20 bushels to 146 bushels per acre shocked
traders and underscored the severity of the month-long drought
which supplies grains across the globe.
The surge in prices would cut into margins at meat companies
like Smithfield Foods Inc, Tyson Foods and
others, crimp profits at ethanol producers and possibly lead to
higher food inflation in the United States and abroad.
Soybeans gained more than 1 percent, pushing prices to near
record highs, as the U.S. Department of Agriculture also lowered
its view of that crop and projected global supplies would remain
historically tight well into next year.
Wheat rallied about 1-1/2 percent, following corn’s lead and
supported by shrinking stocks due to robust demand and adverse
weather that has damaged production in several key exporting
countries.
Chicago Board of Trade new-crop December corn jumped
20-1/2 cents, or 2.9 percent, to $7.38 a bushel by 8:40 a.m. CDT
(1340 GMT) after earlier notching a contract high of $7.48 a
bushel reached on Monday. Spot July corn rose 17-1/2
cents, or 2.3 percent, to $7.78-1/2, near an all-time high of
$7.99-3/4.
Chicago’s front-month July soybean contract fell 0.3
percent to $16.46 a bushel in position-taking after climbing to
a record high of $16.79-1/2 a bushel on Monday. September wheat
rose 0.3 percent to $8.24-1/4 a bushel.
New-crop CBOT November soybeans rose 29-1/2 cents, or
1.9 percent, to $15.68 a bushel after hitting a contract high of
$15.75. Front-month July soybeans gained 25-3/4 cents, or
1.6 percent, to $16.74-1/2 after climbing to a record high of
$16.79-1/2 a bushel on Monday.
CBOT September wheat gained 14 cents, or 1.7 percent,
to $8.35-1/4 a bushel.
“The most bullish numbers are the corn yield and corn
production, which USDA just took down more than the trade
expected. I don’t think it’s outside the realm we’ve been
talking about, this type of production, but the fact that the
USDA went there” was surprising, said Jack Scoville, analyst
with the Price Group.
The scorching drought across the Midwest will slash corn
yields by 20 bushels per acre from its previous month forecast,
much more than most analysts had expected, the USDA said.
The average yield of 146 bushels an acre, the lowest since
2003, reduced the agency’s forecast for ending stocks by 37
percent from last month, partly offset by lower exports and less
ethanol usage.
The forecasts were not based on field surveys, which USDA
conducts later in the crop year.
“If they can drop it down 20 bushels an acre without going
into the field, then it must be really bad out there. We can
expect to see additional reductions once they go into the fields
and start doing the measurements,” said Shawn McCambridge,
analyst with Jefferies Bache.

Prices at 8:43 a.m. CDT (1343 GMT)

LAST NET PCT YTD
CHG CHG CHG
CBOT corn 779.25 18.25 2.4% 20.5%
CBOT soy 1674.50 25.75 1.6% 39.7%
CBOT meal 492.40 10.20 2.1% 59.1%
CBOT soyoil 54.44 0.23 0.4% 4.5%
CBOT wheat 819.25 14.50 1.8% 25.5%
CBOT rice 1545.50 1.00 0.1% 5.8%
EU wheat 251.00 2.50 1.0% 24.0%

US crude 85.06 1.15 1.4% -13.9%
Dow Jones 12,617 -37 -0.3% 3.3%
Gold 1573.91 6.22 0.4% 0.6%
Euro/dollar 1.2259 0.0010 0.1% -5.3%
Dollar Index 83.2670 -0.1330 -0.2% 3.9%
Baltic Freight 1146 -14 -1.2% -34.1%

In U.S. cents, benchmark contracts, except EU wheat (euros)
and soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb.