Source: Rita Jane Gabbett, MEATINGPLACE, 5/30/19


Corn futures hit a three-year high this week, topping $4.22 per bushel for July delivery and over $4.50 for contracts as far out as May 2020 delivery as the cool, wet spring continues to keep farmers out of fields across the Midwest.  

While livestock producers have enjoyed much lower prices over the past three years due to large U.S. crops, it just got more expensive to feed cattle, hogs and poultry.

During the month of May alone, corn futures prices have surged by 17%.

Soybean prices, while reaching their highest level since mid-April this week, have climbed only about 2% and have remained below $9.00 a bushel as trade disruptions with big soybean buyers such as China have kept domestic supplies large.

USDA’s latest Crop Progress report showed that by May 26 just 58% of the U.S. corn crop was planted, compared to 90% on average over the past five years. Just 32% of the crop had emerged, compared to 69% on average by this date.

Hardest hit are some big corn-producing states, including Illinois, where just 35% of the crop is planted, Indiana (22%), and Ohio (22%).  

Soybean plantings also lagged at 29%, compared to an average of 66% by this time.

While conventional wisdom says late planting can lead to smaller yields, Ohio State University Extension Certified Crop Adviser Harold Watters notes that with the right growing conditions through the rest of the season — barring an early frost —  corn farmers could still see decent yields.

Still, the late spring and continued rains have some investors nervous. Shares of Tyson Foods, Pilgrim’s Pride and JBS all declined on Wednesday, on feed cost concerns. The dip follows strong share price gains by these companies so far this year, fueled by the African swine fever outbreak in China and the expected associated protein shortfall.  

With this late start to the planting season, grain prices will likely follow the weather  throughout the growing season.
The 10-day weather forecast across the Midwest: more rain.

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