Watch for ‘An Early Low’ With Corn Prices

Bumps in the Road for Markets 070220

It’s the beginning of July — and many in farm country say it feels like it too.

“It does look as if we have some heat building [and] more heat than last year,” says Chip Nellinger, risk management consultant and cash grain specialist with Blue Reef Agri-Marketing. “We know even with continuing rainfall that heat during grain fill and pod set really is an issue and can be a yield robber.”

Pro Farmer reports there might be some showers developing between July 12 and 18 but it might not be enough to reverse the drying trends across the board.

AgDay meteorologist Matt Yarosewick says the heat will continue throughout the holiday weekend.

“We see a few showers and storms popping up throughout the middle of the country as we head toward Friday morning,” Yarosewick says. “The heat will still be on as we head to Friday and really throughout the weekend.”

Showers are likely in the Southeast, he adds.

Pro Farmer reports corn and soybeans continue to move higher on fund buying as forecasts remain warm and dry into the weekend.

Funds have a massive short position in corn, more than 300,000 contracts,” Nellinger says.

He’s watching for “an early low” in price.

“We have this big crop coming,” he adds. “Could we potentially put in an early low? From a crop insurance perspective and PLC perspective, the lower we go, the better that is for potential revenue.”

Hear Nellinger’s perspective when you click on the clip.

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