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Weather and ratings hammering markets

An agricultural economist with Advance Trading says favorable Corn Belt weather continues to weigh on commodity prices.

Brian Basting tells Brownfield, “It has been a weather market and we’re looking at one of the wettest Julys in recent memory.”  He says, “Some are saying that this June and July could be one of the record wettest, and that has really hammered the markets.  Corn is making new contract lows this week, and beans are under some pressure.”

He says August weather will determine much of the soybean crop, but despite some reported issues in areas, he says the corn crop has high expectations.

“The big picture is 73% good to excellent corn nationwide.”  He says, “That doesn’t help those folks who maybe have struggled a bit, whether it be some wind damage or pollination issues. But it appears as though it sure has the potential to be a good one at this point overall.”

Basting says he expects the weather market to continue through at least Labor Day, but he also notes an outside factor, such as a major trade deal, could help turn prices around.

AUDIO: Brian Basting – Advance Trading