While weather remains among the factors key for marketers to watch as the corn and soybean growing season continues, it’s just one of many. That’s according to Mike Florez, Florez Trading, during this weekend’s U.S. Farm Report Market Roundtable.
"You can’t ignore it, but I make my buy-and-sell decisions based upon the charts," Florez says. "The market discounts weather factors, demand factors. My thinking is that the market has discounted about all it needs to discount right now, that the market has priced in a perfect crop again. I look around at other markets. Crude oil is up above $100. You’re not going to stop ethanol production. Livestock prices are good, and that sector’s probably going to heal up. We’re exporting a lot of grain."
Heading into the fall, it will also be important to watch South America for movement.
"It’s going to be a big deal because last year they all responded by increasing acres," says Brian Basting, Advance Trading. "How are they going to respond this fall? And as we start to harvest our crop, of course, we move into another weather market in South America, and how important will that be this fall and winter, I’d say, is as important as ever because we’re still tight world stock-wise."
Watch the complete Market Roundtable by playing the two videos below: