NORMAL – You better buckle up, because this growing season could be like a roller coaster.
The season is starting off wet and that could potentially impact crop prices, according to Curt Kimmel of Bates Commodities in Normal. The short-term forecast calls for less moisture heading into next week but the longer term maps have another moisture maker hitting April 16-20 with daily rain chances.
“It could be a bit of a challenge here getting a whole lot of work done in early April,” Kimmel admits. “The market could maybe have a little bit of a pop in here. It would not get wildly bullish, but it might be an opportunity to move some more cash grain.”
We all know we will get a crop in the ground, but Kimmel believes the market may start to get a little excited as we get into the last half of April.
The monthly USDA Supply and Demand report comes out next week and is expected to show old crop corn carryout at 2.345 billion bushels, indicating an ample supply. World corn, soybean and wheat supplies are at the upper end of expectations. Kimmel says the large supplies should keep a lid on prices even if the market does get excited over immediate weather concerns.
Kimmel notes that when the weather is wet early in the season, we often get a few weeks of dry conditions in July.
Bates Commodities can be reached at 800-779-1515 or online at www.batescom.net.