There was plenty of green on the screen Wednesday, which was another good day for the markets.
The big reason for the rally as of late is the weather situation in South America and in the hard red wheat area.
“We are seeing some drought conditions going on that way,” explained Wayne Nelson of L&M Commodities.
Farmer selling typically doesn’t occur during a drought and Nelson believes that is helping beans currently. Also, some very low wheat crop ratings came out on Monday. Areas like Kansas and Oklahoma saw some of the lowest ratings ever.
“The weather forecast doesn’t look very good for them out there either,” Nelson adds.
This is why wheat was up 13-19 cents Wednesday. That, along with a continued dry forecast for South America, pulled corn up too. Beans are in somewhat of a weather market but demand driven, according to Nelson.
Nelson has noticed quite a few new crop sales being made, as many are looking for $4.00 December corn and $10.30-10.40 November beans. This is a good opportunity for anyone who hasn’t sold the new crop yet.
“We have seen a fair amount of movement happen here.”
Nelson will be one of the speakers at The Central Illinois Farm Network’s 2018 Ag Outlook Meeting, planned for Tues. Mar. 27 at Gig’s Place in downtown Fairbury. A free pizza buffet dinner will be served at 6 p.m. followed by the market panel discussion. Reserve your spot by calling: 217-530-3107.
Nelson will also be among the speakers at Tuesday’s All Day Ag Outlook Meeting at the Beef House in Covington, Indiana.