Delayed corn and soybean plantings in parts of the Midwest could push a grain-price rally that typically occurs in June into early July, says Elaine Kub, author of “Mastering the Grain Markets.” Traders and market observers frequently tell farmers summer offers at least one opportunity to lock in sales at a higher price.
“Given the way that the entire agronomic potential is just going to be a few weeks later this year than previous years, maybe we will be looking more into early July than late June for that one good summer rally,” Kub tells “AgDay” host Clinton Griffiths on the Agribusiness Update segment for Wednesday, June 28, 2017.
Chances are good this won’t be another record-breaking year for crop yields amid dry conditions in the northern Plains and wet conditions farther south and east, Kub says. Price momentum could pick up as harvest nears, depending on the signals USDA sends.
“The speculators might want to see USDA projections bringing that corn yield down,” Kub says. “If USDA projects corn yield below 170 bu. per acre, I think that confirmation could start to spook that speculative side of the market.”