Markets Rise, But What About Demand?

May 16, 2019 12:48 PM
 
 

Commodity markets continue to move higher this week due to wet weather and planting delays. Despite a brief break in the clouds, the short-range forecast continues to indicate a wet weather pattern.

The latest USDA Crop Progress Report shows it's the slowest start on record for corn planting in Illinois, Indiana, and Ohio.  Nationally, it's the third slowest start. Only 1993 and 2013 were slower.  

The weather-driven market movements in grains are helping pull futures prices off multi-year lows, but analysts caution that demand is still an issue.

Joe Vaclavik of Standard Grain told AgDay, "Demand for all these crops-corn, soybeans, and wheat-have been sluggish and lower prices.  What is this rally going to do for demand?  It's probably not going to be good.  Exports have been sluggish across the board.  We're already competing with large South American crops.  We've got a currency disadvantage.  We've got African swine fever in China, so big picture here, we've still got a lot of very negative fundamentals, but short term, it's all about the weather."

 

Back to news


Comments

 
Spell Check

Keith
Rushville, IN
5/17/2019 06:15 AM
 

  Agree Dave ! Nobody cares outside of agriculture until they go hungry !

 
 
Dave
Auburn, IN
5/16/2019 08:35 PM
 

  Better worry about supply, will be very few acres planted by June 1

 
 
Jack
Mitchell , SC
5/17/2019 08:11 AM
 

  and the next thing well be talking about, aka whining about, too hot and dry.....it's farming, we always battle mother nature, try calving out a 1,000 head in March and April blizzards, then you got something real to talk about.....keep the faith. We had late plantings last year, and look at the yields across the country. Different seed technology, different planting methods, etc. AND WAY TOO MUCH CROP ACROSS THE ENTIRE GLOBE. The USA is not the only producer as we were in the 1970's.

 
 

Corn College TV Education Series

2014_Team_Shot_with_Logo

Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!

Markets

Market Data provided by QTInfo.com
Brought to you by Beyer
Close