Farmers Are Still Holding A Big Unpriced Inventory! - Weekly Market Outlook: June 3-7th
Jim McCormick with AgMarket.Net visits with Chris in this week's market outlook.
In this week’s discussion Jim and Chris talk about the slow planting pace and the possibility that there could be as many as 9 million acres yet to be planted.
However, we’ve seen a significant price decline from the May highs, so there are other factors the market may be considering as we move forward from the planting issues.
Jim goes on to hit on a number of Market fundamentals, including Fund positioning, geopolitical issues, zero Chinese demand - to date, and the soon to come crop ratings that could give us some market strength; depending on what crop condition ratings show in the weeks ahead.
Jim also points out some observation from the commercials which indicate that farmers are still likely holding as much as 25% -30% of their old crop corn, and as much as 10 to 15% of soybeans.
New crop sales also lag with commercial perspective that farmers are only 9% sold on corn and 7% sold on soybeans. Finally, Jim points out the importance of getting your offers in place as many times the market will give you an opportunity, but it’s often short-lived and in the night trade.
