MarketsFarm — Much of the focus from the Chicago Board of Trade (CBOT) for the week ended Wednesday has shifted away from besieged Ukraine — and toward areas closer to home.
Prices for nearby corn and soybean contracts rose over the past week due to weather-related rallies, but wheat prices held rangebound.
The U.S. northern Plains and Canada’s eastern Prairies were hit with a Colorado low bringing large amounts of snow on April 13-14. While the wet conditions brought much-needed moisture to drought-stricken areas of the U.S. Midwest, growers are determining when to begin spring planting.
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“We’re starting to turn into a weather market this week,” said Scott Capinegro, broker with Barrington Commodity Brokers in Barrington, Ill. “We’ll get (planting) started by the weekend in some areas. I just saw someone post that there are some rains in Nebraska, and Nebraska’s dry. They need the rain. It’s kind of perfect for getting ready to put some seed into the ground.”
Capinegro called the ongoing Russian invasion of Ukraine “old news” unless urgent developments arise from the conflict, adding that Russia is still exporting crops and fertilizer to other countries.
South America, he said, is also having little effect on the markets despite warm and dry weather affecting Brazil’s safrinha (second corn crop), as well as the end of a truckers’ strike in Argentina.
“Argentina’s corn, and Brazil’s also, I think their corn is still cheaper than ours. So who would want to (buy) from the U.S. right now?” said Capinegro.
He anticipates grain prices to be “sideways to lower” next week if growers decide now is the time to start planting.
“The time frame once you start getting seed in the ground and there’s a little rain, that’s going to be called a ‘perfect start,’” said Capinegro. “The market action with planting going on should be a little bit on the bearish side, giving up a price break. It won’t hurt the trend, but it’s good and healthy to have a price break.”
— Adam Peleshaty reports for MarketsFarm from Stonewall, Man.
