“Right now, there’s nothing to trigger buying in the weather,” said Jerry Gidel from PRICE Futures on Wednesday’s AgriTalk After the Bell. “The market is trading like conditions are good everywhere and will stay that way until October when we harvest the crop.”
While somewhat joking, his point was well taken by ATB host Chip Flory. Gidel and Flory talked with USDA Meteorologist Brad Rippey during the show, and Rippey did mention one thing that Gidel said could trigger the market to build-back some weather risk into prices: heat.
Rippey says the hot and wet pattern that’s been in place – with “surges of heat” suggest a similar pattern will continue.
“There are indications in the outlook that suggest heat comes back in the week of the Fourth of July and lasts into the middle of the month,” said Rippey.
With the Midwest corn crop expected to start pollinating around July 10, Gidel said, “That could bring some weather premium back into the market.”
For the Full AgriTalk After The Bell conversation click the player below