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Weather causing short-term crop market opportunities
A University of Missouri ag economist says farmers recent weather events negatively impacting crops might not mean large positive movement in commodity prices.
Scott Brown tells Brownfield the USDA still projects corn yield to be nearly 2.8 billion bushels.
“We could trim on yields pretty hard and still have ending stocks going out of this coming year that would be above year ago levels,” he said.
Brown said even if events like the derecho in Iowa and dry weather don’t lead to long-term gains in prices, there is still opportunity.
“When these weather events do unfold, it may give opportunities to market even if those are short-run price run-ups,” he said.
Brown said crop demand heading into 2021 remains uncertain because of trade uncertainties, Brazil’s expected large production and a strengthening dollar due to COVID-19.
