A challenging weather year for farmers and ranchers all across the country was clearly reflected in USDA’s crop report released yesterday. The report revealed expected drops in both production and supply; therefore, USDA is forecasting record prices not only for corn but also for wheat and soybeans. Prices for all three commodities were moved upward from the May estimates due to weather challenges. The cotton price remained the same as the May estimate, but it is still a record.

Todd Davis, crops economist with the American Farm Bureau Federation says – drought and floods are taking their toll. Davis says corn inventories are still tight and farmers are hoping the weather will cooperate so there will be enough production to increase supplies to a more comfortable level.

Davis points out there is a – very, very tight stocks situation, representing just 19 days of supply. We clearly need a big crop this year to build our supply reservoir. The Farm Bureau economist pointed out that – farmers can still make up for planting delays brought on by flooding, but they clearly need cooperative weather in July and August to make a good corn crop.