Weather sent the markets tumbling earlier this week, but down on the farms it came too late for real change.
Dry conditions persisted throughout most of the growing season in Argentina, setting in motion a cascade of events that some late-growing season showers wouldn’t fix.
Winter wheat acres in the American Plains also saw some moisture as showers in the south and flurries in the north.
Apparently the markets hadn’t fully built that into their plans because some commodities took five percent haircuts March 19.
Concentrated on soybeans, soymeal and wheat, the markets began slashing at recent strengths, leaving soy oil to remain flat, retaining crusher margins and with it providing some strength for declining canola futures.
American corn kept up its strong export pace, and that softened the Monday blues, off only two percent in Chicago futures.
“Weather is still making news out there,” said Bruce Burnett of Glacier MarketsFarm.
“It wasn’t all built into the price yet.”
DTN forecasts show the potential for more precipitation before early next week, including the Dakotas, Minnesota, Iowa, Missouri as well as the eastern corn region.
Winter wheat crops have already broken dormancy in the southern Plains but had limited water resources. The central Plains were hit at the end of the first week of March with high winds up to 120 km-h in Kansas and Nebraska. Temperatures soared to 30 C at Russell, Kan., creating more problems for crops coming out of dormancy. By the time showers arrived last weekend, conditions of the winter cereal were 52 percent poor to very poor in much of the region, according to the USDA’s weekly bulletin.
Rain fell across most of Argentina over last weekend. Despite not being able to improve yields, oilseed futures generally were hurt by the news.
“It will help them plant a winter crop and rain is rain in farming,” said Burnett.