Market Outlook

The Commodity markets were closed yesterday for the Memorial Day holiday. So today, we’ll visit with Central Washington Grain Growers Assistant Manager Paul Katovich shares some insight into the wheat and corn market for the next month.

Katovich: “For the next 30 days, what I’m watching is continued weather stories, odd breaks -- are we seeing demand pop in. That is kind of hard to pick up as usually the market will move before you see who has stepped in the market to buy but that is what I watching now. Then also being mindful that this corn crop that we just cut, was 10 billion -- it came off a month earlier than a normal corn crop did and saved the supply and demand squeeze from the previous year from getting too ugly. Now is being asked to stretch for an additional month. So we’ve had a corn crop that is the smallest in a generation and instead of being a 12-month crop it is being asked to be a 14-month crop. And that is why we are seeing price support where we are. And it is also carrying over to the wheat market because that feed gap -- something has to fill that gap and it will be wheat. Local wheat in California, soft red, hard red, and to a certain extent soft white wheat in the Pacific Northwest -- all of those will play a part in bridging the gap to make it to real new crop corn stocks.”