‘THE GHOST OF TOM JOAD’: Horrible Heat And Drought Conditions Are Creating The Worst Crop Conditions Since 1988
Jul. 10, 2012
The heatwave is ravaging America’s crops in a manner that hasn’t been seen in years.
In a report titled: The Ghost of Tom Joad: The Drought Digs Deeper into Crops. Ian Horowitz at Topeka Capital Markets writes:
Monday night’s USDA Crop Progress report was far from a surprise as the majority of the country saw extremely high temperatures and little precipitation last week. Corn and soybeans have continued their respective rallies higher as prices will need to move higher in order to destroy demand for what is now expected to be a growing season on par with the 1988 disaster.
On corn specifically, he writes:
The corn crop rated good to excellent declined another 800bps this week to 48% versus 69% at the same time last year. As far as the largest of the major corn producing states, Indiana now has 61% of its corn crop rated “poor” or “very poor.” Missouri now only has 12% of their crop rated “good” to “excellent” while 60% of their corn acres are below the “poor” threshold.