Drought Lingering, 2013 Acres Crucial for Corn

Farmers Have Potential for "Extremely Large" Harvest

The drought that slashed U.S. harvests and sent corn futures to record highs last year persisted into 2013, keeping grain prices at lofty levels even amid an outlook for a huge, bounce-back crop, according to University of Illinois agricultural economist Darrel Good.

Corn production in 2012 dropped to the lowest in six years as severe drought gripped much of the Midwest, putting stockpiles of the nation's biggest crop on track to hit a 17-year low by late summer. While corn futures are currently down about 15% from an all-time high of $8.49 a bushel reached in August amid eroding demand, prices remain well-above pre-drought levels.

"Short crops have long tails," Good wrote earlier this week on the farmdoc agricultural news site, citing a longstanding market axiom. Market focus as a result is shifting toward the 2013 acreage outlook, with some analysts projecting the highest corn plantings since the mid-1930s.

"Such acreage would point to prospects for an extremely large crop in 2013," Good said." Early season acreage expectations, however, are often not a good forecast of actual acreage."

Read Full Report

Futures & Options Trading

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through the CME Globex electronic trading platform and trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort.

Idea Exchange

Idea Exchange is your direct link to the product managers, marketers, and the development teams who create cmegroup.com and will allow you to review functionality, participate in focus and provide feedback on upcoming Web initiatives

Idea Exchange - Join Our User Focus Program

Contact Us

CME Group/Chicago HQ:
Local: +1 312 930 1000
Toll Free: +1 866 716 7274

Global Customer Contacts

More CME Group Direct Lines
Phone list by department

Global Partnerships


Global Offices Contact Information

Calgary Houston Chicago New York Washington São Paulo Belfast London Singapore Hong Kong Seoul Tokyo Beijing

© 2014 CME Group Inc. All rights reserved.

CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX, and COMEX.