A weather premium hit grain markets this week as traders begin to question how the 2017 planting season will unfold, says Jerry Gulke, president of the Gulke Group in Chicago.
“With agriculture entering the critical planting stage,” Gulke tells “Weekend Market Report” host Pam Fretwell for an episode airing April 15, “the markets could be building a weather premium back in the market for some ‘what-ifs’ out there, such as what if we get weather delays? What is that ultimately going to mean?”
Grain buyers are hopeful farmers plant all the intended acreage projected by USDA on March 31, Gulke says.
“The buyer knows that he’s better off paying a little bit more now to get all the acres planted to something then have producers decide on alternatives like grass, alfalfa or even prevent planted (PP) Gulke explains.
Cattle prices continued their impressive moves this week. Soybean prices posted a reversal and rose 13 cents higher from week-ago levels.