We need a lot of days of below normal precipitation to dry out Nebraska, Iowa and Wisconsin to prepare for corn plantings. The NOAA recent flood advisory map of those states doesn’t look so good as per getting the crop in early. On the other hand the aquifers are getting a much welcomed fill up. As stated in previous reports, it’s not the time of year to get too bearish as the trade is sensitive to market delays and anything which might destroy yield potential. Strength in beans is surprising as more acres may result if corn cannot get in the ground.
Weather is becoming more of a market factor which is typical for this time of year. We always assume normal conditions are ahead yet we contend with the actual daily. There is no need to get too concerned with wet weather as there’s a lot of time and opportunity to seed and new equipment allows planting to be very quick and efficient. But, the market was beaten down in February and March and we’re at prices which are not that attractive with normal yields.
Producers might be ready to sell some new crop corn production if we see a handle of $4 in the country and we’re a long way away from that right now. Soft red wheat producers might let some stuff go with a cash price above $5.00 and that’s a long way up. Typically, it’s sold when harvested, delivered to the elevator to be priced later yet, before the real money makers, corn and beans start coming off the combine.
Please, start getting into the habit of looking at the forecasts. They matter!
The information contained on this site is the opinion of the writer and obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in current market prices.
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Steve Bruce
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