Corn tops crop tour talks

By LYNN MONTGOMERY | East Texas Edition

Collin County Crop Tour attendees listen to Dr. Jurg Blumenthal, Extension sorghum specialist, during one of the tour stops. -- Staff photos by Montgomery

July 31, 2003 -- In 2002, corn brought in nearly $7.5 million in cash receipts to Collin County, according to the counties Farm Service Agency.

Because corn is the largest crop revenue in the county, several corn topics were featured during the 22nd Annual Collin County Crops Tour on July 16.

The tour got off to an early start (7:40 a.m.) as attendees boarded air-conditioned tour buses on the way to view corn plots in McKinney, a vineyard demonstration in New Hope, and then more corn plots, including mycotoxin corn and biotech (Bt) corn, in addition to milo and soybean plots at the Texas A&M Experiment Station in Prosper.

Dr. Kevin Ong, Texas Cooperative Extension plant pathologist, told the audience this was the first year for studies to be performed on mycotoxin and Bt corn at the Prosper station, and the study will be ongoing.

"We won't know any results until the end of the year," Ong said.

Ong continued his talk in the afternoon in an indoor session.

Dr. Kevin Ong, Extension plant pathologist, answers a tour-goers questions about corn. -- Staff photos by Montgomery

"When you break the word 'mycotoxin' down, myco refers to fungi, toxins refer to bad for you," Ong explained.

Mycotoxins are chemical compounds produced by fungi while growing on organic substances such as corn.

The Bt corn is suppose to be resistant against insects, and studies in the Midwest have shown an decrease in insects, according to Ong.

The studies in Prosper, which are a joint study between Ong and Dr. Allen Knutson, an Extension entomologist.

"I believe if Bt is suppose to be insect resistant, then it's doing its job," Ong said, even though there has been reports of ear worm damage in some of the Bt corn.

Another topic at the crop tour was a grain market update.

Dr. Blake Bennett, Extension economist, said, as of July 16, "The corn crop condition is the talk. The corn market is pounding profit possibilities as the weather continues to be generally favorable. The good/excellent ratings are incredibly high for corn and soybeans, which means the rain came often enough and the temperatures have been hot, but not too hot.

"Corn futures continue to sink on the excellent weather reports. As of yesterday afternoon (July 15), December corn has sunk to $2.12.

"So, can this bearish market action continue for the whole summer?" Bennett asked. "It can with cooperative weather."

Bennett added crop sizes still have plenty of room to rise as many estimates are close to trendline yields since the key reproductive stage is still to come.

Bennett advised farmers to "watch for any type of weather scare and to hold your short hedges until you see a close above the trend line. "

As far as the wheat outlook, the economist said due to being in the thick of harvest, a bearish crop report, along with poor export sales, is the news. But, "the market may be shifting its focus away from harvest and back to expected good demand this year."

The recent wheat report, according to Bennett, showed the USDA increased the U.S. total wheat production by 135 million bushels with most of that coming from hard wheats.

"We had a 50 percent increase over last year," Bennett cited.

"As for as U.S. export prospects," Bennett continued, "there is little doubt that the trade has high expectations. Our prices have become very competitive and sales have responded."

The economist said, "It's a tough waiting game, but I think it's best to go with the odds - big spring wheat crop will continue to cast a shadow on prices for another month, and there is also a large amount of spring wheat from last year still under loan, which means wheat is sitting in bins across the Northern Plains, and will likely have to come to market before harvest."

But, Bennett added he thinks there will be a "robust export season this year."

"So, what should you do?" he asked producers. "In a nutshell, keep your powder dry for about another month. If I'm wrong about the short-term outlook, at least you've got the bushels re-owned. If sales have to be made, look to replace them with December call options. If the low is not in yet, look for price activity that could signal a bottom.