The Buzz: Weather in the Bulls Eye for Corn and Wheat
Bryce and Arlan discuss weather's potential to impact this year's crops.
Compiled by staff
Published: Apr 22, 2009
While outside markets can have a huge impact on grain price movements on any given day, traders are more and more focusing on weather as the growing season gets underway. The Farm Futures marketing team of Senior Editor Bryce Knorr and Market Analyst Arlan Suderman discussed the potential for weather to affect the spring markets on this week's edition of The Buzz.
Early corn planting is off to its second slowest in the 24 years nationwide records have been kept. But Suderman says early progress doesn't correlate well with final years. But delays past May 10 could put the crop behind the eight-ball.
The wheat market has also been slow to respond to weather threats, despite slow spring wheat planting combined with drought and freeze damage to the south on the Plains. The freeze damage in Kansas will still take a while to unfold, says Sudernman, with adequate old crop carryout muting rallies for now.
As they head to the fields, producers should have a battle plan, detailing how they'll react to both rallies and selloffs, says Knorr. Those with too much old crop corn on hand should target the top of the trading range for incremental sales if the market rallies, looking for basis opportunities when prices pull back.
To watch this week's program, click HERE.
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Tagged: wheat, farm, farm futures, farmfutures, farmfutures.com
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