MN Commodity Broker Says Market Again Ignores Hot and Dry!
Commodity Broker Gordy Kralovetz with Chiodo Commodities in downtown Minneapolis has been in the industry since the late 1980's. In fact Gordy's first year was the drought year of 1988. while that was a historic drought there have been many more weather scares since then. The most recant severe drought was 2012. Well, until maybe this year. If you have listened to our reports on KDHL you know it is difficult to understand why the corn and soybean market continues to ignore the drought in the western corn belt.
What makes this even more difficult to understand is the USDA in the monthly Supply Demand Reports has said we are going to run out of beans before harvest this fall. Corn carryovers are very tight but we might get by until fall. In addition we need almost record yields for this growing season and still the USDA projects grain stocks will be very tight next year too. Then there is the second crop of corn in Brazil the world market was counting on that has been hurt badly by late planting, drought and early frost.
Gordy said he has never seen anything like this. It is almost like there is a very powerful force working to "keep a lid" on the grain markets. Is it a fund, foreign government or commercial grain companies? There is no way to know but maybe someday we will? Listen to Gordy discuss last weeks market action.
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