Grain News – Spring Coming in Like a Lion
Spring is coming in like a lion, hopefully that means there will be calmer weather ahead. Although market chatter has been somewhat dull there are a few topics to talk about. As you know across the U.S. major flooding is occurring. Corn, beans, and wheat are up just a smidge this morning. Then there is South America’s harvest. All of which can drive the markets and here is why.
Flooding through the Midwest and the South have turned tragic. The South is having issues getting corn planted. If corn is not planted in the south, they will be forced to plant other short crops like beans or cotton. The Midwest is seeing flooding as well, but thankfully there is still time to dry out before planting season arrives. There are a few ways flooding can affect the market. One way is less acres of corn planted therefore driving price of corn up. Also, more beans planted driving bean price down. The impact of this “weather scare” typically will not reflect in the market until July time frame when agronomist start predicting yields.
Yesterday prices were down after a pretty strong ending to the week last week. This morning prices are up just a little. Corn is up a penny for current price through fall. Beans are also up a penny for current price and fall. Wheat (SRW) is taking about a nickel jump north. While markets are up, it is the time to continue forward contracting grain. We have seen countless time this year markets are up slightly and then plummet down, especially on beans.
R.J.O’Brien released updates for South America. Although there was somewhat of a drought in Brazil this year their numbers are still looking promising. Above average on soybeans harvest, not good for our record high Stocks. 1st crop corn harvest is above 2018 so far. To top if off, South America is starting 2nd crop corn planting.
Although there could be some drivers for the markets both positive and negative, don’t forget to stick to your marketing plans. Your marketing plan should be designed to beef up your average price on grain, not just hit highs. If you do not have a marketing plan contact one of us and we will help you create one.
Enjoy the warm weather!