Weather Markets suck...

[royalfan5]

Probably the least favorite part of my job because of the amount of irrationality it injects into an already irrational market. Plus, it means somebody somewhere is going to struggle to raise a crop, and that sucks even worse for them.

[sappstuf]

Corn down here in South Texas just burned up.. It never got higher than 4 feet.. Looked terrible.

[soonercruiser]

Weather channel gurus are expecting the drought to spread across the east - made worst by the heat.

[87sooner]

yesterday was prolly my last shot at raising a crop this year....
and we only got a sprinkle...
wheat was terrible....corn is burning to a crisp...
i was happy i didn't have either...
unfortunately....milo will be next..
prices are gonna go to da moon....but no one will have anything to sell...
oh well.....it will boost my insurance payment...
might be the second time in 5 years i have a total loss..

[Chuck Bao]

yesterday was prolly my last shot at raising a crop this year....
and we only got a sprinkle...
wheat was terrible....corn is burning to a crisp...
i was happy i didn't have either...
unfortunately....milo will be next..
prices are gonna go to da moon....but no one will have anything to sell...
oh well.....it will boost my insurance payment...
might be the second time in 5 years i have a total loss..

I am terribly sorry to hear that 87sooner. I hope that you get a bumper crop next year and prices remain high so you can recoup part of your losses.

Royalfan, I imagine how frustrating it is trying to sell hedging contracts to farmers based on logic and reason except the weather doesn't play nice.

Farming is a crap shoot as it is. I can't imagine a farmer locking in prices early through a hedging contract, then have total crop failure and have to cover at inflated prices. That would be losing double, wouldn't it?

Thailand is having some very weird weather. The hottest month of the year was supposed to April but this year it was wet and cool. It delayed harvest, especially some summer fruits, by at least a month. In the north, we already had severe flooding and we haven't even begun the monsoon season yet.

Finally, we are starting to see food prices subside, a little.

There was a very, very weird statistic in April and May with Thailand's farm income (both crops and livestock) up 60-80% yoy due to high prices encouraging more production.

We are trying to get in two rice crops this year and already planted early with unusual early rains. We will probably get more flooding and lose twice. Dang. Last year, we had total crop failure because of flooding. It's enough to make you cry.