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Markets not responding as expected to planting disruptions

Agriculture economist Darrel Good says planting disruptions have had less market reaction than he’d expect.

“One might expect that the market would get a little bit nervous when there’s any threat to yields and production,” said Good, who’s at the University of Illinois, “particularly in a year when we’ve cut corn acres by about 4 million.”

With the exception of 2012, Good tells Brownfield Ag News there hasn’t been a significant weather market in the past 20 years, which may result in fading memory among traders.

“Frankly, right now there’s nobody out there suggesting that we’re going to have significant weather issues this summer,” he said, “so I think the market is just saying ‘I’m not going to get concerned until there’s an absolutely good reason to do so.’”

Good adds that traders may consider it to be too early in the season for weather to move the price of corn.

AUDIO: Darrel Good (3 min. MP3)