Supplies of corn from the Southeastern United States are good as favorable weather once again returns to the region. Growers say hot weather plagued the crop in the early part of the fall season, but has since moderated. The overall lack of tropical disturbances has also provided a steady footing for the crop.
"The majority of corn is coming out of Southwest Georgia right now," said Brett Bergmann of Hugh Branch. "Volume is steady and quality is good thanks to the overall favorable conditions. Sizing can sometimes be a concern for the fall crop but we have not seen any issues of that sort this year."
Bergmann added that the Georgia season is expected to continue into next month before transitioning to Florida. "We expect supplies of corn out of Georgia to continue into November before we cycle into the Florida season," he said. "It's important to finish up before the freezes arrive in Georgia, which can on occasion begin at the end of October."
Market below cost
Although volume and quality are both good, demand is such that the market is slow and prices are weak. As steady supplies continue, the market is expected to remain in this position until holiday demand kicks in. It will also depend on when and how the first freezes will occur in Georgia.
"Currently we are seeing a $9 - $10 market, which probably puts it below production costs at the moment," Bergmann noted. "Growers would surely like to see it edge a little higher than where it is sitting at the moment."
"Thanksgiving should provide a bit of a boost to the market, but in the end it all depends on supply and demand," he continued. "It will also be affected by whether or not we have an early or late freeze in Georgia. An early freeze will place pressure on supplies until better volume starts coming out of Florida."
For more information:
Brett Bergmann
Hugh Branch
Ph: +1 (561) 996-6500
[email protected]
www.hughbranch.com