Weather a driver for the grain markets

The chief commodities economist with StoneX Group says the weather is an important factor for corn and soybean prices as planting continues across the Midwest.

Arlan Suderman says it’s unclear if there will be additional moisture for the dry areas that need it.

“Do we really finish refilling the soil profiles of the moisture in some of those areas that are dry or do we go into the growing season without that? As we transition to La Nina, that’s going to be key.”

And he says the timing of the transition from an El Nino to a La Nina is important for the upcoming growing season.

“If you look at what a plus or minus 5% could do to yield, it’s not that hard to do. Some of the models say it’s coming earlier and we could have the last half of the summer be hot and dry. Others say it’s going to be later and it will come in about the time we’re harvesting and help the harvest.”

He says if there’s normal weather during the growing season, the U.S. is expected to produce a good crop, which could put more pressure on commodity prices.

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