The possibility of early frost has driven up corn futures which are strongly higher Tuesday. The market is reacting to forecasts for cooler temperatures late next week that will slow crop maturity and could bring some frost to parts of the northern Plains and upper Midwest.
“The likelihood for frost damage to the corn crop looks a lot more probable today than even a few days ago,” says Martyn Foreman, Doane corn economist. “Over the Sept. 25 and 26 period, a big chunk of the corn belt may be at risk. With the crop maturity level lagging, the market takes the frost threat seriously.”
Corn is lagging in maturity with USDA estimating that only 12% of the crop is mature versus the five-year average of 37%. December is 14 3/4 cents higher at $3.32 1/2.
Despite the frost potential, Foreman says producers may see some further yield estimate increases in the October USDA report from the September report. “We’re looking for an increase of a bushel or so in the USDA estimate.”