The too hot and too dry weather conditions are adding even more uncertainty to an already pressured corn and soybean market. Purdue Extension ag economist Chris Hurt says the uncertainty of yield losses could be especially painful for farmers who have already contracted a large percentage of their anticipated corn.
“If they (farmers) don’t raise enough bushels this is the most tragic of situations,” he says. “Not only do they have a lower number of bushels produced (and of course they have to take the low price they forward sold at on those bushels), but the difference in what they are unable to produce – they may have to even buy those positions out at considerably higher prices.”
Hurt says this can be one of the toughest scenarios for farmers because not only do they do not generate the income they projected – they also have to repay the buyer of those grain contracts.