While many producers are focused on the weather right now, traders warn you should not lose sight of demand. Expectations for acres and production are up, and there is a lot of grain in storage right now.
As we head into the Fourth of July, some analysts are preparing for a rally. They warn producers should stay defensive and possibly consider adding to hedges if lows are taken out. If there is a rally, they say producers could use those rally attempts as selling opportunities for what is still in the bin.
Economists with USDA say corn growers still have a lot of supply on hand, and it is a lot more than last year.
“And I think another issue with with this is, at least in the way that NASS measures it, farmers are holding a bigger share of those stocks relative to last year as well, too. So stocks rising, production rising, those stocks being held on farm now, they could be forward sold. But let’s hope that some of the farmers got some of that priced at better levels,” said Seth Meyer.
Analysts also say farmers should be closely watching South America and the weather down there in order to get ahead of the potential impact on the markets here.
