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US Crop Rumours Are Just That

US Crop Rumours Are Just That

19 March 2015

US - Warm and dry weather in parts of the US, while continuing to cause some fears for winter wheat, are expected to support maize and soybean planting pace.

By offering a good start to crops, markets will typically respond bearishly to this, but it takes more than a good planting season to make a crop.

In contrast, there are also suggestions that US fertiliser usage will be lower due to current low crop prices, reducing the optimal yield that is economical to push for.

With the release of the USDA’s planting intentions survey on 31 March, grain and oilseed markets are gradually turning towards new crop fundamentals.

After several months of markets trading off this season’s strong supply situation, new crop fundamentals will now be beginning to move prices in their own right.

With a long way to go until Harvest 2015, new crop news can drive volatility without necessarily having an impact on new crop prospects – rumour versus fact. This needs to be remembered when planning your new crop marketing strategy.

TheCropSite News Desk

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