Markets are higher following an extended weekend that gave us the weather they were forecasting, wet! The forecast has heavy rains moving through the Midwest from Tuesday through Thursday this week. Another similar system builds on Sunday that builds into Tuesday of next week. After this system some heavy rains hold in the West covering Kansas and Missouri. We don’t see any organized storm systems after June 8th and temperatures will warm up. We are at risk of a change in the weather for the better now. A forecast change will increase the volatility in prices. There will definitely be prevent plant acres this year, but prices and a government payment are going to keep that lower than expected. The longer this market rallies, the more corn that will get planted late. Planting progress is expected to be 60-70 percent planted in corn, 30-35 percent in beans this afternoon. We have 35 million acres of corn to plant and roughly 60 million to go in beans. There was a lot of corn planted around our area over the weekend and I have talked to more and more producers that are done with corn. I talked with a producer in central IL (Champaign) who said the current prices have them planning to go well past their prevent plant dates because the revenue is better. They are changing out seed for shorter day corn. (switching from 118 day to 110 day)
Usually in a weather market you should sell each week the market is up. There will be a day that we start the morning sharply lower, and high of the market will only be obvious from the back side of the hill. If you have corn planted, I recommend scaling into sales on this rally. Don’t get caught in a bullish mood and miss an opportunity to market at profitable levels.
Have a Safe Day!