Supplies of corn are snug nationwide. On the East coast, production is underway in Florida though colder temperatures have impacted corn crops there. Meanwhile, on the West Coast, production is coming out of Mexico which has also seen some cold weather and freezing temperatures.
“It’s all delayed and/or hurt production,” says Daren Van Dyke of Five Crowns Marketing, noting that one grower in Obregón lost some 160 acres due to the cold. “We’re basically producing out of Gusave and there is also corn in Obregón and Sinaloa and in these areas, everything’s been pushed off because of how low the normal temperatures have been. They’ve been like that for a month straight,” he says, adding that at this time of year, it’s largely value-added or tray-pack corn being supplied.
While Florida production will transition to Georgia in the spring, Mexico will go until mid-April. From April 1-10, California begins corn production out of the Imperial Valley.
Value-added demand strong
As for demand, while winter is typically a lighter demand period for corn, tray-pack corn is a slightly different story. “Demand for tray pack is actually pretty good and people are continuing to consume corn during the winter,” Van Dyke says. There’s also growing foodservice interest in corn on the restaurant side of the business, though retail drives sweet corn movement in the winter.
This means pricing is strong on corn and Van Dyke anticipates it to stay that way for at least the next three to four weeks due to the lack of warm weather boosting corn production.
Looking ahead though to the California season, he believes production could be down slightly in the Imperial Valley. “My guess is it will be down just a touch mainly because of water constraints. Growing corn requires a tremendous amount of water per unit harvested,” says Van Dyke. “Fortunately we got some good weather and I think we’re going to have a better allocation in northern California, though that won’t get started until after Memorial Day.”
Source - https://www.freshplaza.com
