As a new week begins, Summit Commodities market analyst Tim Marsh says grain traders are closely watching Brazil’s weather. “If rain doesn’t happen in the next two weeks, it pushes back their planting and harvesting dates for soybeans and it gives the U.S. a greater window of opportunity to China. Plus, it pushes back the planting dates for the second corn crop. If that gets pushed back, it runs their pollination phase into the dry season and it could severely impact corn yields.” In the meantime, the grain price rally and decent basis provides an opportunity for U.S. farmers to sell. “We reached price levels that are more than fair for this time of the year given the current fundamentals of the market action. Do I think we’ll go higher eventually? Yes, I do, but farmers may have to store grain to see ultimate highs down the road.
Subscribe to RRFN
Get a weekly digest from RRFN to stay up-to-date on all the latest news in agriculture.