More Bad News For Food Prices, As US Crop Situation Deteriorates

Dried corn crop

[credit provider=”AP Images”]

This year’s crop is way behind schedule, and not looking good compared to recent seasons, according to data released by the USDA.The spring wheat schedule is way behind schedule, with only 22% of the crop being planted. That’s behind the five year average of 61%, according to USDA meteorologist Brad Rippey.

The situation in corn is bad too.

From UBS:

Plantings of the 2011 corn crop, at 40%, are off to a start that is behind last year’s crop (80%), as well as the average pace over the last five years (59%). Additionally, 7% of the corn crop is now emerged, behind the 36% emerged at this time last year and the five year average pace of 21% emerged.

Weather conditions across the U.S., including flooding in the south, are the likely drivers behind this year’s weak crop. And well commodity prices fell sharply last week, more weak crop data is likely to push up prices.

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