As we get the 2021 growing season underway, the volatility of the market is mostly focused on the weather patterns in the United States, even though South American weather is still going to be holding some influence. Many parts of the country are in some kind of a drought rating. Some areas are ready to receive rain, and some could hold off a few more days. However, Mother Nature does not take requests.
Audio: Opening Market Podcast with Greg McBride 5-17-21
Planting is wrapped up in parts of the south and the west. They are ready to receive some rain and get their crops off to a good start. The problem is that they are not getting the rain they need. Some parts of Iowa, Minnesota, Wisconsin, and beyond are still wanting to finish their planting, but they are getting nuisance rains which are mucking things up just a bit. While moisture is welcomed, they would rather see it hold off until planting is completed.
Allendale?s Greg Mc Bride talks about the weather situation and the dual problem it is causing for producers around the Cornbelt.
The outlook is somewhat favorable for rain to fall where it is needed, but how much remains to be seen. It also means that some areas need the chance to dry out a little to finish putting in their crops.
Pair these weather struggles in the United States with the issues in South America, and it is making for some increased volatility. Supplies are tight and looking to continue that trend for the foreseeable future. McBride says the U.S. needs to see heat and rain to develop the crop that is going to be so badly needed this year.
The numbers and outlook will be firmed up when USDA announces its weekly crop progress numbers on Monday afternoon.
