According to USDA meteorologist Brad Rippey and AgDay/U.S. Farm Report meteorologist Mike Hoffman, this might not be the hot and dry summer many of us could expect.
We won’t know until September how the summer weather will play out, but if there isn’t a weather scare, a marketing plan should be in place.
“This thing could get really volatile,” said Chip Nellinger, risk management consultant and futures market specialist with Blue Reef Agri-Marketing.“Have a plan and know where your breakevens are and your costs and reward that—lock in margins when you have a chance.”
According to Mike North, president of Commodity Risk Management Group, favorable weather conditions could add an additional 400 to 500 million bushels of corn.
“USDA changes up their acreage in June,” he told U.S. Farm Report host Tyne Morgan. “This could swing 800 [million] to 1 billion bushels really easily.”
Brazil is starting to see dryness creep into the country after their wet season, which could spell disaster for their crop if it “gets extreme,” according to North.
“That’s their exportable crop, so if that becomes endangered and now they don’t have the bushels to push out the door, that export opportunity grows for us,” he said.
Hear North and Nellinger’s full conversation on the U.S. Farm Report marketing roundtable above.