usa weather

[malleefarmer]

forecasts are worth naf all i know

but some stuff filtering through suggest
usa drought to intesify and continue,in
summer and fall

wouldnt have thought it possible geez its
sounding like australia in the 2000s

[burnt]

http://www.agweb.com/article/drought_conditions_cease_in_eastern_corn_belt/

[charliep]

Was at a market outlook conference early this week and at least some chatter of last years weather challenges across the mid west continuing into next summer. Still an unknown. Winter weather has improved things across the east side of the US corn/soybean belt but the west remains dry and neither area have looked after the subsoil moisture situation. The spring/early summer rains will be critical.

Winter wheat has gotten some moisture/snow but at least one speaker indicated there has been damage to US HRW regions. SRW is good shape (different production area).

The range on new crop US corn futures was $4.50 to $9/bu with the weather the determining factor. Big crop/demand destruction versus drought/not enough to meet base usage.

As indicated, my interest is never information but rather what you do with information.

1) Do nothing and be the farm.

2) Do some basic pricing at the 20 to 30 % of expected production and leave the rest of the crop ride on the market.

3) Use minimum price contracts like option strategies, SPE in Alberta, other grain company alternatives.

[Kodiak]

[URL="http://www.agweb.com/article/dreadful_drought_ahead/?smartid=000000L111000010000000000&spMailingID=410 72643&spUserID=OTUxNjI2NDMxNgS2&spJobID=179380359& spReportId=MTc5MzgwMzU5S0"]Caution Ahead[/URL]