As a new week and unfolds, Joe Vaclavik, president of Standard Grain, is watching how the markets will react to weather forecasts and yields traders can punch in their balance sheets.
“Those are the big ticket items this time of year—it’s really the only thing that matters.,” said Vaclavik. “Crop conditions are going to start to mean more as we get further toward pollination, and even more so into August.”
Andy Shissler, S&W Trading, thinks USDA’s estimated 170 bushel per acre corn crop will be hard to come by in the fall.
“The trade is going to start questioning [if] we [are] at 165 [bushels per acre],” said Shissler. “If you’ve got another week where [there’s] more heat around, they start talking a 160. If those are real or not, I don’t know, but the perception of it would really put a boost in prices.”
Because farmers across the country had to deal with wet conditions when planting, Shissler believes the bean populations will be poor in 2017, worse than corn.
“We’ve been slammed with all that stuff in a couple weeks and then it didn’t rain for a month—that doesn’t do good,” he said.
Hear why Vaclavik says prices could remain strong and why there could be new highs on AgDay above.