NASHVILLE, TENN. (RFD NEWS) — More than 100 million people are staring down one heck of a winter storm, quickly approaching major parts of the United States, including farm country. Analysts like Brian Hoops with Midwest Market Solutions tell RFD NEWS the weather system is already moving the ag markets.
“Bitterly cold temperatures, a lot of ice in Texas is forecast, which they’re not accustomed to, a lot of snow in some of the Plains states, and that’s one of the reasons why wheat has pulled back from its recent highs,” Hoops says. It’s going to be cold, but now, they’re going to have some chance of snow to help insulate that wheat crop.”
While some row crops are expected to see softer impacts, Hoops says severe weather of this magnitude will not be as kind to Texas cattle producers.
“It doesn’t help the cattle market or help cattle feeders out there in the country when they have to contend with ice, snow, plus bitterly cold temperatures,” Hoops says. “So that’s going to be a supportive feature to our cattle market this week.”
Darin Newsom, senior market analyst at BarChart, is also watching weather reports. He also told us this storm could put cattle producers in a difficult spot.
“If you can’t get cattle to the barns, you know, how are they going to create, you know, cash prices if it can then be indexed and so on? How far back, how far will what set these markets back? Is it, will it be bullish? Will it be bearish?” Newsom says. “Is it something we just have to kind of put an asterisk by whenever they do start getting things up and running again, if the weather turns out as bad as possible, as forecast right now? So I think it’ll be interesting to see how the market reacts.”
As with any winter storm, there are many variables, especially this far out. RFD NEWS Meteorologist Jeff Womack is in the weather center right now, gathering the latest models.
To view Jeff’s latest forecast, click here: Weather
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