The grain markets had a nice rally this spring led by the wheat market with weather and crop concerns in the Black Sea driving prices but there has also been concerns about the U.S. crop with delayed planting in some areas and now heat and dryness in parts of the Corn Belt returning.
Chuck Shelby, Risk Management Commodities, says every year weather can make the markets volatile, making it difficult for farmers to price their grain or do risk management.
However, he says with a marketing plan and price targets in place producers can take advantage of rallies when they come.
Seasonals usually dictate corn prices top out around July 4th while soybeans generally hit their peak in August.
Shelby stresses that rallies in a weather market can be fleeting and markets can top even before the news gets the worst.
Plus, he says they can often correct as quickly as they rallied and the wheat market is a good example of that this year.
