Market News

Was the corn market increase unwarranted?

Corn and soybean markets moved higher on Thursday as prevented planting acreage became the big topic of discussion. Specifically, that growers had filed claims on 3.411 million acres of corn they were unable to plant due to wet weather in May and June.

Rich Nelson, Chief Strategist with Allendale told Brownfield’s John Perkins they are using the prevented plant acres in wrong way. “A lot of people are mistakenly taking these numbers off from what USDA said for the total planted acres. Keep in mind that as far as the planted acre numbers, those are numbers that already have the prospective planting declines already plugged-in here.”

Nelson says Allendale will be adjusting their corn numbers down…maybe 200 to 500,000 acres to account for USDA’s latest report. They will “reserve the bigger move” until October when the USDA actually reconciles their acreage.

AUDIO: Nelson talks about the market mp3