Indiana Grain Company, LLC

Posted: 09/20/09

By: tomgrisafi

Kimura Financial predicted a bump in Corn and soybean prices as US crops may actually be smaller than the government predicted after planting delays and an unusual dry spell.

Parts of the Midwest, the main growing region, received less than 50 percent of normal rainfall in the past 30 days, according to the data from the High Plains Regional Climate Cente, referenced by Kimura Financial in their findings. Corn plants that farmers will begin harvesting are growing at about half the five-year average, and the rate of pod-filling by soybeans is 17 percentage points below normal, U.S. Department of Agriculture data show.

The government’s estimate of average weight for corn ears is too high, and flooding has stunted early development of the soybean crop, reducing the average number of pods, Kimura Financial analysts told investors in an emailed statement. Late planting also increases the risk of damage from frost because crop maturity is delayed, they said.

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