After a weekend of cold wet weather and a forecast this week that does not look good for planting or early crop development, there remains a good deal of uncertainty in the market. Jim Bower, with Bower Trading, says conditions are highly variable across the Corn Belt, “We have customers in Ohio who are doing great on planting, and others in Minnesota where they still have several inches of snow on the ground and they are very worried about the sugar beet crop.” Cooler temperatures in the west also have raised concerns about the Winter wheat crop.
Bower says the big funds are very short the market, but it is still too early to make any definite prediction on which way prices might go, “It is not time to panic yet, we have a large carryover and overall demand that is doing pretty good.” He added that the market needs a spark to get moving.
For producers, Bower recommends staying flexible, “Be prepared to go either way, especially if we have an up move. Be in a position to make a trading or cash decision that fits your risk tolerances.” He said he thinks the move will come, but with little notice.
For more information contact Bower Trading at 800-533-8045 or visit www.bowertrding.com.
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