Stagnant crop prices seems to be another clichéd term of 2017, but a weather situation in South America could “significantly” play a role in U.S. price margins.
Mark Gold, executive team member of Top Third Ag Marketing, says there’s a long time before the Brazilian crop is made.
“Some of these patterns continue and we continue to see hot, dry weather down there, that can be a benchmark,” he said. “It doesn’t take much weather if it hits at the right time and the right amount to really do some harm.”
If December and February are hot and dry in Brazil, Gold believes the market will respond “in a big way.”
“Things can change and that would be a great catalyst to see this market move higher,” he said.
If this doesn’t come to fruition, Gold says soybeans still has “tremendous demand.”
But for corn? Watch AgDay above to hear what he thinks farmers need to do to propel the corn market higher.