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Analyst says weather is not the market mover now

Dry conditions are impacting the west, but a broker and risk management advisor says weather is not a concern right now in the Corn Belt. 

Mike North with ever.ag says, “Dry weather is not something in this country that shuts a planter off. It just changes what seeds are being put in it.”

North tells Brownfield the markets are not moving much on the weather because most of the new crop is still in the seed bag. “It’s still the second week of April. You know, we’re not really concerned about late planting. A lot of fieldwork last fall got done. The fields are in real good condition. All we really need at this point is some warm weather.”

North says at this point, the weather is affecting the market a lot less than the recent USDA reports on planting intentions and ending stocks. “When we took those acres away March 31, we basically re-presented to the market that the stocks are not only tight today, but they could still be tight come fall, and that’s why the new crop prices have rallied against the old crop prices.”

North says there are pockets in western Nebraska and the Dakotas that are already dry. He says farmers will plant dry fields, but maybe not with corn. “And they may still, but the dryer they get, the more apt they will be to stick with any plans to plant wheat.”

North tells Brownfield he has also heard from some producers in dry regions that are considering sorghum instead of corn.

North says with corn prices above five dollars a bushel before planting, producers should be actively working on their marketing plans now to lock in some profit in case the market changes.

Mike North from ever.ag discusses how weather and the ending stocks report are impacting prices and planting decisions with Brownfield’s Larry Lee 4/13/21

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