Why the Market Hasn't Responded to May's Wet Weather

May 17, 2017 02:53 PM

Wild weather in the Corn Belt in the beginning of the month flooded freshly planted fields and dumped inches of snow on Kansas wheat. Farmers were expecting to see a bump in prices, but failed to see any reaction in the markets.

Naomi Blohm, senior market advisor with Stewart-Peterson, said the market’s main focus is that the “crop is going to get in the ground and get planted.”

“It’s going to assume the best until proven otherwise and history tells us that we get the crop in the ground,” said Blohm.

Angie Setzer, vice president of Citizens, L.L.C., agrees, citing wet weather in 2015 as a prime example.

“That year we produced a brand new record crop,” said Setzer on U.S. Farm Report. “A lot of times, the trade thinks of wet weather—for every acre that you’re damaging, there’s two that are benefitting from the moisture.”

She said producers can’t say the same thing when the seed hasn’t emerged because of cold temperatures or because it hasn’t been planted.

Hear Blohm and Setzer discuss the impact of Memorial Day on the cattle market and dairy demand on U.S. Farm Report above.

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Spell Check

Show me the money
Mt. Vernon, IL
5/19/2017 02:00 PM

  Again love how all these experts hedge their bets. "on one hand crop gets planted, but watch out for the last 5%". Let's face it...short of a drought, every single farmer has both barrels loaded of 40% of his old unpriced and 80% of his new crop unpriced - just praying for a bounce. Market has beat us down for 3 years running. Slightest bump in prices and we will unleash our fury. Market knows it...and that's why fund have near record short position. Flooding seldom provides a immediate bump. Need a blow torch for about 4 weeks. Next 2 weeks look cool. If I was a fund & short, I stay that way too. So it boils down to a game of chicken, who flinches first ? The funds who are short a billion bushels of corn , or the U.S. farmer who has 6 billion old and 12 billion new to sell? Kinda lopsided ain't it?


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