By Fred Nichols
Chief Marketing Officer,
Huma^®, Inc.

Rain makes grain. Those words are as old as farming itself. In the nation’s breadbasket – the three I states, which produce 42% of our corn and 37% of our soybeans – there’s concern over the lack of rain. That triggered a major movement in the grain market. Drought officially grips 100% of the I states. When I was visiting my family farm in western Illinois two weeks ago, corn leaves were already rolling as a defense mechanism to conserve moisture. They have not received any rain since. The corn continues to grow, but it has been affected, as during these past few weeks ear size is being determined. Less than half of the corn in Illinois is rated good-excellent. Soybean leaves are puckering in many areas. Over three-quarters of the topsoil in Ohio, Wisconsin and Michigan is rated as short to very short. Corn markets were up 25 cents on Friday, soybeans jumped 50 cents. But domestic weather isn’t the only factor pushing soybeans, which have already climbed $1.65 this month. The US dollar now stands at a one-year low against Brazilian currency. Why does this matter? Brazil is the USA’s biggest competitor on the world export stage. With two-thirds of American soybeans exported, a weaker dollar makes US soybeans even more attractive. [Read more…]