Dennis Gartman: Corn Has Reached a Breaking Point

The corn crop will probably be so small that industry will have to make some tough choices.

“This is absolutely the worst time to have this kind of drought and heat wave – it’s happening right at pollination,” explains esteemed commodities investor Dennis Gartman, author of The Gartman Letter.

He thinks companies are now at a point of no return. In a live interview on CNBC's Fast Money Gartman tells us that even if it does rain and the leaves turn green, the corn inside the husk won't be substantial.

"We thought the harvest would yield 14.7 billion bushels but it’s going to come in under 13 billion bushels,” he says.

And that will lead to some tough choices. We’re at a point where there won’t be enough to go around.

“I think it means corn for ethanol use will have to wait,” says Gartman. “We’ll need the corn for feed," or livestock will go hungry.

Also Gartman says if you’re buying ferts as a bet fertilizer will be needed to help salvage corn crops, think again. “That’s nonsense – farmers aren’t going to apply any more.”

Posted by CNBC's Lee Brodie

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Trader disclosure: On July 17, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour is long BAC; Tim Seymour is long SBUX; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is short SPY; Karen Finerman is short MDY; Karen Finerman is short IWM; Steve Weiss is long QCOM; Steve Weiss is long DVN; Steve Weiss is long T; Steve Weiss is long VZ; Steve Weiss is long WLP; Steve Weiss is long BCE; Steve Weiss is long VOD; Steve Weiss is short PCAR; Steve Weiss is short APPLE PUTS; Steve Weiss is short JCP; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is long XLU

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