All farmers’ eyes and the eyes of the commodities trade are on weekly crop condition ratings and the various weather forecast models predicting conditions that could affect the Corn Belt. Doug Werling with Bower Trading says the mild liquidation move in the markets Monday might be ending.
“Essentially we had such a big liquidation type mode at the end of last week and you probably ended that last little liquidation here Monday to start things out.”
Monday USDA dropped the good to excellent ratings for both corn and soybeans by one percent nationally, and more dry weather this week will stress crops, particularly in the southwestern Corn Belt. It’s leading to what Werling calls “pockets of problems. That’s the theme this year, pockets of problems. It’s not just one general area,” he explained. “I think there’s enough evidence out there and also with these crop condition ratings to suggest that the corn yield and the soybean yield that the government is using on their crop report tables is going to be coming down here in the future.”
With the variability of pollination dates this year, he says make sure you’re getting the right attention from your marketing advisor.
“It’s a one to one, customer by customer situation. For example, customers in western Kentucky who have already pollinated and are looking good on corn have a completely different strategy from a marketing standpoint compared to someone say in the southwestern Corn Belt who’s waiting for things to pollinate.”
Hear more from WerlingBower Trading July 17 Market Strategy-Doug Werling and for more information call Bower Trading at 800-346-5634 or online at www.bowertrading.com.
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