UPDATE 1-Normalcy slowly returns to US Midwest, Plains

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Thu Dec 10, 2009 12:56pm EST

(Adds economist comment, details, byline)

By Meredith Davis

CHICAGO Dec 10 (Reuters) - The transportation and processing of grains and livestock slowly return to normal in the U.S. Midwest and Plains on Thursday after the regions were battered a blizzard, while corn farmers were forced out of the fields by the thick snow, an agricultural economist said.

"The storm was a momentary blip. These closures cost a little to shut things down and bring them up again, but we should be getting back to business as usual," Chad Hart, extension economist at Iowa State University, said.

While the Midwest and Plains are expected to dry out for the remainder of the week. Temperatures are expected to drop below zero in some areas, which keep the snow on the ground.

The larger concern is the storm hampered farmers that still have corn crop in the fields, Hart said.

The U.S. Agriculture Department reported on Monday 88 percent of the corn crop had been cut in a delayed harvest season.

"Essentially more than 10 percent of the production has been taken off the market for the next couple of months. We will not be able to move that corn into the market place because its still in the field," Hart said of the storm's potential market impact.

In Iowa, most meat processing plants were up and running early on Thursday, after at least two were closed on Wednesday. Some production lost due to storm related shutdowns will be made up on Saturday, livestock traders said .

In the grains market, truck deliveries of corn and soybeans were still slow, dealers said early on Thursday.

TEMPERATURE REACH SUB-ZERO LEVELS

Temperatures in the U.S. Plains were bitterly cold on Thursday. The region saw temperatures ranging between minus 10 to minus 5 degrees Fahrenheit (minus 23 to minus 20 degrees Celsius).

"As long as the wheat is under snow cover the low temperatures are not damaging to the crop," Palmerino said.

Otherwise, the outlook called for dry weather through Friday, with a slight chance of rain or drizzle during the weekend.

In the eastern Corn Belt, the outlook called for temperatures the single digits and low teens on Thursday. While in the western corn Belt, temperatures will drop below zero on Thursday, ranging between minus 13 to minus 3 F.

The Corn Belt will warm on Friday when temperatures will range between 20s and 30s F.

"This is a good forecast for producers not under deep snow cover. But they'll still be struggling in places like Iowa and Northern Illinois," said Palmerino.

LINKS

* DTN World Commodities Weather Spotlight [ID:nDTN756]

* Weekly USDA crop progress highlights [US/CROPS] (Additional reporting by Michael Hirtzer and Alyce Hinton; Editing by Marguerita Choy)

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