Drought, famine, and scorching heat are crippling crops, including corn, throughout various regions of the country. The heat wave is having wide spread impact on agricultural output and bottom lines. We turn to the webcams the farmland of America to find out what’s going on?
Roger Neshem, a farmer from Berthold, North Dakota joins the guys for this conversation. He farms 500 acres of corn, as well as 3300 acres of wheat, among other crops, including canola.
How's the market for corn?
We’re going to be able to sell all our crop – and we’ve increased production 3 fold this year and the main driver behind that is price. The reason why prices have gone up is increased demand for corn.
But wheat hit a record?
Yes, they had some harvest issues that drove prices higher. And the big corn acreage has brought corn prices down, but I think it’s oversold and price will come back.
Why do you think that?
They’re having some production issues in parts of the corn belt. (Roger is in North Dakota.) It’s dry and the next 30 days will determine how good the crop is. If it gets warm and dry they will have some problems.
Are you seeing that reflected on the commodities floor, Eric?
Not yet, Eric replies.
If there’s one thing you wish you could plant more of – what would it be?
Corn. But it’s tough until we have a more reliable history with this crop. North Dakota is up about 73% this year and expected to be up another 50% next year.
Dylan asks Eric, what’s the trade?
Eric Bolling says stay the with Fast Money Ag Play. In case you’re not familiar with the Ag Play on March 29th Eric Bolling introduced the panel to 4 stocks he liked in agriculture. They are Monsanto (MON), Deere (DE) Agrium (AGU) and Bunge (BG).
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Trader disclosure: On July 11th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders. Macke Owns (EMC), (DIS), Najarian Owns (DNDN), (IMMR); Bolling Owns (ICE), (NMX), (DIS), (XOM), Gold, Silver, Copper, Corn; CNBC Is A Service Of NBC Universal And Dow Jones; NBC Universal Is The Parent Company Of CNBC