Monday, September 24, 2012

Aflatoxins and corn - problem as we move through harvest


When you have warm weather and drought, corn will develop mold which creates aflatoxins, chemicals from the mold which harm animals which eat this feed. This creates a set of uniquer conditions which affect the harvest for corn. First, the harvest is started sooner in order to get the corn out of the fields. Second, farmers will not want to store corn with aflatoxins in their bins. The result is that more corn is brought to market sooner. The price will start to come down as this supply hits the market, yet the numbers may not represent the amount of good corn available.

More screening of the crop will have to be done. Some of the grain brought to market will be rejected. At this point, we do not know what will be the impact of this mold problem, but in the longer-run there will be less feed available. Aflatoxins can be given to animal but the percentage has to be controlled so as not to reach toxic levels. Contaminated corn can be turned into ethanol but the DDG's from the corn may be contaminated.

This is a problem that will affect price upward as we move through the harvest season.

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