The Buzz: Can Weather Trump The Flu?
Weather and fundementals are holding their own against flu fears.
Compiled by staff
Published: Apr 29, 2009
Just when it looked like grain markets might be ready to trade fundamentals after a tumultuous fall and winter, the outbreak of flu in Mexico raised fears that outside forces might again take control of futures trade. However, Farm Futures Market Analyst Arlan Suderman says weather and other fundamentals appear to be more than holding their own as panic over the disease threat begins to ease. Speaking on this week's edition of The Buzz, Suderman said fears of planting delays should continue to support the corn market.
Farm Futures Senior Editor Bryce Knorr noted that the SARS outbreak in 2003 had little impact on the grain market, though it did briefly depress the stock market. With the forecast cool and wet for the next two weeks, it could be difficult for producers to plant the 35 to 40 million acres of corn needed to keep yield potential from slipping.
Soybeans, meanwhile, appear focused on China, which apparently cancelled up to five cargoes of beans this week, amid disappointing export inspections. Still, Suderman noted supplies of old crop beans should continue to tighten, helping support the market.
To watch this week's program, click HERE.
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Tagged: farm, soybeans, farm futures, farmfutures, farmfutures.com
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