Tuesday, June 17, 2008

2008 not 1934

Our 2007 weather patterns mimicked 1933 with La Nina and record crops in the mid-west. The dry winter did not materialize and we did not see dust storms roll across the mid-west this spring. In fact the wet weather from last year continues, and threatens to reduce crop yields because of too much rain. So the drier year after La Nina may be next year or maybe we just miss it this cycle. What would have happened to corn prices if the weather had actually been bad? A few weeks ago when it roared through five dollars a bushel it seemed high. Yesterday it closed at $7.65.

1 comment:

Anonymous said...

"Rain in due season" is very desirable. The flooding in Iowa will have a big impact on this year's crops. The good news and bad news? Silt laid down from flooding can serve to enrich land that never rests. The bad news - the silt may be toxic...