Photo: Rob Wile for Business Insider
We’re about to find out just how devastating this year’s record-smashing drought has been.On Friday, the USDA will release its first national forecast of corn and soybean yields for the growing season.
Chicago Mercantile Exchange trader Eric “Wolfman” Wilkinson says the report will be “epic.”
“The USDA had people in the fields for this report,” he said.
While soy bean crops have received some 11th-hour rain, he said, he talked to one corn processor in Kentucky who was projecting 90 bushels per acre — lows not seen since the 1980s.
As the Financial Times’ Gregory Meyer notes, the report will “influence trading for days and weeks to come as well as possible government decisions on biofuels and feed exports.”
The fallout from the report could last even longer if it prompts government officials to adjust ethanol additive requirements, which would subsequently affect fuel costs.
Of course, the report will instantly affect prices for livestock, which consume the bulk of the corn industrially grown.
Meyer writes that analysts polled by Reuters expect 127.3 bushels per acre, though the wide dispersion of forecasts suggests no one is sure.”
Watch “Wolfman’s” preview here: