Too much rain & tweeting
The past week in ag included nice price rallies, a small increase in export sales and too much “tweeting,” according to one market analyst.
Wayne Nelson from L&M Commodities in New Market, Indiana says prices were back down on Friday due to a better weather forecast from the day before.
“The planting progress is definitely at a standstill for the next couple of days,” Nelson told The Central Illinois Farm Network. “We see that some of the big firms are talking about anywhere from 7 to 10 million acres of prevent plant corn.”
President Trump decided to tweet late in the week that we might be adding tariffs to Mexico if they don’t help the U.S. secure the border. Mexico is our biggest customer for corn and the news put a dent in the markets Friday morning.
“Every day that we can’t get in the field is a day later and less corn will be planted,” Nelson adds.
Extra acres of corn not produced this spring are helping our end carryout and it took a higher price to keep farmers wanting to plant corn acres. The higher prices will likely generate an additional day or two past the June 5 prevent plant date.
“If prices would go up higher, that might stretch out the date to June 15. I think that’s what we need to see to try to get a few more corn acres.”
L&M Commodities can be reached at 1-800-382-0986.