It’s a weather market
A market analyst says the grain markets will be influenced by the weather forecast as July begins and the U.S. corn crop matures.
Tim Marsh with Summit Commodities tells Brownfield last week’s rains will be helpful to the dry crops across the Midwest and traders are watching to see if the derecho marks a shift in the weather pattern.
“Weather is what’s important two weeks from now. It would be unusual not to get one more weather scare to get the corn market to recover some, even if the bean market may not need the help.”
Marsh says last week’s derecho appears to be different than 2020, due to the timing and stage of the corn crops.
“On August 10, 2020, the corn was full size. It caught a lot of wind and had ears on it starting to fill. Most of it was harvested. It was a pain to harvest, but most of it had a surprisingly good yield.”
The grain markets are closed for Independence Day and will reopen at 8:30 a.m. on Wednesday.