U.S. grain markets completed another week, which included light trading volumes. A market analyst shares what you can expect from the upcoming, yet shortened trading week.
Greg McBride, commodities broker with Allendale, Inc., reflects on this past week’s trade. McBride says, “Volume was low across all markets.”
“What we’re seeing is a lack of participation, at this point. We’re not seeing the funds come in and slam the market down lower,” McBride said. “We’re not finding a lot of willing sellers when we get to the lower end of the range and we’re not finding a lot of willing buyers when we get to the upper end of the range.”
Corn futures ended one-quarter to one-half cent lower on the week, while soybean futures closed near a nickel lower. McBride expects trading volume to remain light after the holiday weekend.
McBride tells producers to “keep an eye on last planting dates,” especially as the month comes to a close.
“Keep in mind is the last planting date for corn on insurance. May 21st through June 5th are important dates,” McBride said. “With some of these areas behind, especially up in the Northern Plains, that could mean we see some switching from corn or more acres going into prevent plant.”
Those in the Northern Plains will give us a better indication of planted acreage before the U.S. Department of Agriculture’s (USDA) June report, according to McBride.
“It sounds like there could be three- to four-million acres that go into prevent plant or switch to beans because they are so saturated and late,” McBride said.