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Moisture Taking Money Out of the Grain Market

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  • Description

    FBN's Jeff Flock on money moving from the grain market to equity market.

  • Duration 1:52
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You.

Look at the hot dry summer in the midwest saying grain prices soaring but the prolonged -- may help -- those prices down ovarian Jeff Flock on -- farm live in McHenry.

Illinois -- the latest Jeff.

It it's the snow actually it's about the snow right now which translates to moisture.

Which is really taken -- money out of this grain market wanna talk about that in a second the first to Michael White to the maps the drought monitor and then after the drought monitor map.

-- -- with a drought is you see where we've gotten the moisture Jim McCormick of Allendale senior grain analyst this was great news.

Yeah we've had a lot of moisture coming in right now -- -- this map a look at that appear as the more -- that's projected to come in over the upcoming weekend it's gonna give us some much needed rain.

-- the driest portion the were receiving the drought.

So what that has done -- created a huge spread if we take a look at the price of corn right now the old.

Crop corn is still -- almost -- not -- seven dollars but it's it's still up there if you look at the December coming up this coming December corn which is the next harvest.

-- -- -- it's much -- -- about a dollar fifty lower plain and simple or hold the old crop up futile last year's drought.

But depressing new -- down due to this moisture coming in -- -- quick thought we get away this money coming out of the market who's pulling out of the -- -- right now all the -- to fund to pull money out the grain marketing their put it back into the equity market because equities are so attractive they are the hot market right now make an all time highs like just before we get away.

LA this doesn't guarantee the fact that we got snow here up to our our -- does not guarantee this moisture is gonna get into the ground and indeed stop the -- No it's I mean as the snow melt some are run off we're gonna need more to go into the springtime -- -- summer's going to be the going to be the key okay equities now not -- I told you by court a year ago if you -- -- rich if not.

Don't buy it now.

Act act you did tell us Jeff Flock thank you so much from a snowy fields and only.

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