We have been watching the ice storm moving through the country. One ag economist says that corn and soybean markets will be more susceptible to weather volatility this year.
According to Dr. Michael Swanson with Wells Fargo, the new crop corn contract can really jump, if there is any sign of an average or above-average crop. He expects extra volatility if there are any planting delays.
With prices for most crops the highest in years and stockpiles sitting at the lowest, spring could be busy for producers. USDA economists are looking ahead to a normal planting season, combine that with prevent planting down to normal levels and current price support, we could see more acres in the corn and soybean columns.
USDA’s Mark Jekanowski states, “If the weather cooperates, we could see record total acreage across these commodities.”
Economists are not ready to offer exact numbers on prospective planting, but we could get some insight at next week’s USDA Ag Outlook Forum, and the full report will be released on March 31st.