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Published on Monday, September 8, 2008

Weather causes grain shortage, higher prices


By LIZ STOEVER
Last updated on 00/00/0000 at 12:00 a.m.

The growing worldwide demand for corn and soybeans had prices at a record high this summer.

To meet demand, farmers nationwide have increased supply. The U.S. Department of Agriculture forecast last month said that there is a near-record 12.3 billion bushels of crop nationwide, but dry weather in the Midwest for most of August could mean much less.

The shortage of grain worldwide has already resulted in relatively high prices.

While prices have been dropping since summer, the price for soybeans is up 5 percent and the price for corn is up 4 percent, said Lyle Paul, an agronomist at the Northern Illinois Agronomy Research Center.

“[Corn and soybeans] have dropped quite a bit in value,” he said.

Farmers in the Midwest could see a drop in their supply resulting in even higher prices.

“The problem is variations in weather,” Paul said.

In DeKalb County there has been 40 percent less rain since July 20, Paul said.

During the beginning of July, DeKalb received above average rainfall.

Paul said excessive rainfall delayed some planting but was not a problem for crops because most of the rain ran off. He also said the flooding over the summer affected only individual fields.

July and August are extremely critical for crops to allow more actual grain production.

Despite weather conditions, the crop condition in DeKalb County is doing well, said Greg Millburg, a manager at the DeKalb County Farm Bureau. The yield for both soybeans and corn is good, he said.

Paul also expects to have a good crop this harvest, but not as good as last year, he said.

DeKalb weather did not go completely unaffected by Hurricane Gustav. DeKalb County still received 1.5 inches of rainfall Sept. 4 as a result of the storm.

“For the most part [the rainfall] is beneficial for soybeans and corn,” Paul said.

As farmers begin to prepare for harvest, the biggest concern is that the first frost does not come too early, Millburg said.

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