The weather market is coming a bit later than normal in the row crops this season. Corn and soybean markets staged some recovery from the washout of the funds the last few weeks with help from a hotter drier forecast, especially the last two weeks in July.
That’s a concern right now with row crops getting planted late and lagging in development.
Crop specialists note there’s some corn pollination taking place in the central corn belt, but very little farther north. Plus, last week the Drought Monitor showed an increase in drought in some of those key production areas.
Market analysts tell us the market is concerned the heat and dryness will hit right at critical pollination stage and so it was adding weather premium late last week and into early Monday. Kent Beadle of AgSurion Risk Consulting says, “We anticipate a good chunk of pollination is going to occur in the second, even more so in the third week in July this year. It’s the lateness and the timing of the pollination that is still important and if we get into this pollination and its as hot as forecasted we could easily lose some yield then.”
Beadle says the corn and soybean markets were already adding in weather premium last week, which was needed after the recent round of fund liquidation.
However, the market will trade forecast to forecast and by noon the model runs had already put a little more rain in the 1-5 day forecast which pulled grains off their highs and put pressure on the grains early Tuesday.
