Since the USDA reports at the end of March, the corn and soybean markets have been very quiet and have lacked direction. Jim Bower, with Bower trading, cautions producers not to get to complacent, “This market acts like it wants to lull everyone to sleep, especially the producer.” He said every time the market looks like it is going to rally, something negative sends prices lower.
Bower says history shows there will be a market move to the upside soon, “I have been in this business for almost 40 years, and only two times in the past 40 years have we not had some kind of a weather scare that has bumped prices higher.” He added these weather scares do not last very long, so he warned producers to have a plan ready, “The market will not give you much time to make a decision.” The USDA will report the first national corn planting pace on Monday.
Last year a sharp decline in the South American Safrinah corn crop prompted a spring jump in corn prices. Bower says that does not look like it will happen this year, but beware, “Last year they had a disaster, but so far this year it does not look like that will be the case. But, weather models change and can change very quickly, so, with that crop pollinating in the next 3 weeks, it is important to keep an eye on what is happening down there.” Bower said they are in constant contact with their scouts in South America to keep on top of that situation.
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