South central kansas | Catgrader140m - 7/6/2020 17:12
I have not been around long enough to experience a real weather market. In the past how wild can these get? Are we one forecast away from limit down? Crop progress came out today hammering Illinois down and lowering everything 2 percent g/e, will this matter tonight/tomorrow market wise? It’s dry here in eastern Iowa but we are just fine for the time being. I know lots in Illinois Nebraska Indiana are hurting bad. Just curious, I can only hope the dry areas get water. Regulars less of our market I would rather see everyone get a crop. Thanks
A Weather market, is primarily the uncertainty of supply relative to the demand. As the perception of supply decreases relative to demand, the market tries to find a price that rations demand or least a balance between supply and demand. With such a large beginning stocks of corn, if it does turn into a weather market, unless it really reduces supply, it won’t be a wild run up in price, not like if stocks were a lot lower than what they currently are.
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