The corn market has been seeing some pressure from a combination of funds and massive supplies from South America. But Dan Hueber of the Hueber Report thinks as much as anything, there’s not a new stimulus in the market that could help.
“We know the funds are on the short side, but they don’t have a great incentive to add additional there,” said Hueber. “To really get a rally stimulating or something to stimulate a rally, we’re going to have to get a weather market.”
Kevin Duling, founder of KD Investors, said based on weather maps, 2017 is looking similar to 2009 and 2013, both years had planting delays and lows were made the last week of April before the market rallied.
If there’s another week of delayed planting, Duling doesn’t think it will take much of a stimulus to get a “sizable bump” in corn, soybeans and wheat.
“We can’t see it today, but now’s not a sell window,” he said. “Just wait until we have something concrete. It’s not good timing.”
Like Hueber, he agrees it’s too early in the year to have a weather market.
Hear Hueber and Duling’s full comments on the South American weather on U.S. Farm Report above.