Delayed plantings now have farmers racing to get crops in the bin before the first batch of snow hits the ground. According to Politico, weather analysts say the Midwest could see colder air coming from the Siberian connection instead of from the North Pole.
In Chicago, trader Ted Seifreid of Zaner Ag Hedge says its definitely a weather market.
“...this isn’t an early event, its just the magnitude of the event, the amount of snow we are talking about, and the damage that can be done by dumping this on already wet and saturated soils, we are going to be uprooting plants. Soybeans sound like they are going to be under snow for days. Wow, this is going to be a mess, and when you look at the potential losses we will have from this...its not massive but I think it brings the production numbers back down to where we were a few months ago when we were talking about whether we were going to make it to the finish line or not, there’s a big chunk of corn in North Dakota that hasn’t even dented yet, that’s going to be a big problem.”
Yesterday the market reacted to the forecasts for snow with front-month corn finishing the day up 8'6 and soybeans up 5'2.
