View from the Cab: Uncertainty prevails

By Kent Casson

Uncertainty is the name of the game in agriculture currently.

Just as the wheat harvesters roll across fields and the corn prepares to pollinate, world events seem to capture all of the headlines and attention.

Russia, Ukraine, Iran and South America are all playing a role in what happens to our markets and the world of ag. Everyone wonders what type of production numbers we will be looking at this year.

Curt Kimmel from Ag Market.net in Normal suggests growers closely monitor the Iran situation and who teams up with who. As far as agriculture goes, these countries need to be buying stuff they cannot go without.

“How much (they buy) is going to be determined as we move forward here,” Kimmel told me in a recent interview. “I’m really surprised the market is not wanting to have some additional coverage.”

Since we are in the summer season, Kimmel is keeping a close eye on how weather unfolds across the growing regions. No one wants a big hail or windstorm which could impact production. Kimmel notes the weather premium has been taken out of the market.

The trade is looking for long-term commitments with export sales.

“We are a big grain bin here in the U.S. We’re the storage unit for the world on grain,” adds Kimmel.

If Brazil or another country runs out of supply, they will likely come to us. China has to buy from us since the Southern Hemisphere cannot meet all of their needs.

“We are watching that export news and will see how that goes.”

Corn-wise, Mexico has been our best customer.

It is always great talking to Kimmel for his occasional market analysis. You can hear various market experts talk to me weekdays during the CIFN Midday Update, which can be accessed on-demand from www.centralillinoisfarmnetwork.com or on our social media channels on You Tube and Facebook.