Crop prices aren’t doing much now but we could see a rally in the next month.
The extended weather forecast doesn’t look threatening for the U.S. currently but a small rally could be coming, according to Wayne Nelson of L&M Commodities. It may not be as big of a rally as some were hoping, but it could be a good time to do more pricing.
“It looks like it’s going to be a good crop year,” Nelson told The Central Illinois Farm Network on Friday.
There is nothing typical about this year, with everything surrounding the COVID-19 situation. Many unknowns remain including reopening the economy.
“Look at the poor meat market and how it’s been disrupted here,” said Nelson. “We don’t have beef in the grocery stores but we got it out on the hoof because we can’t butcher it.”
Markets stayed sideways to end the week on Friday as there is little pressure due to tensions with China. Wheat saw a rally caused by little rain in the Black Sea region and crop ratings out west. The Kansas crop tour said wheat will likely be about six bushel less than the USDA report indicated.