With the current drought devastating the US corn crop, some seed companies are already concerned about seed supplies in 2013. At the Canadian Seed Trade Association annual meeting this week two seed companies mentioned to me that a bad scenario is possible for supplies this coming winter.
A chain of events has led us to this point. First, the 2012 contra season corn seed harvest was poor due to dry conditions in South America. Secondly, there was strong demand for corn seed by North American farmers in the spring of 2012. Thirdly, the current US drought will provide lower than expected corn seed production yields. This chain of events leads us to the pressure to produce a significant South American corn seed crop in order to supply the North American market in 2013.
With corn prices sky-rocketing demand will be very strong in 2013 for corn seed and hopefully there is enough seed to supply the market.