Valley City Times-Record

Progressiv­e Ag Marketing Report with Lilja

- By Tom Lilja Tom Lilja is an employee of Progressiv­e who writes this column for the Times-Record.

I listened to an interestin­g weather segment last week on WDAY radio. There’s a weatherman that has developed a long range forecastin­g model called the Lezak Recurring Cycle or LRC based on weather patterns that start around October 6th when the sun sets in full darkness (no twilight) at the north pole. They look for the same system to repeat after the October 5th8th timeframe. When the next similar system shows up they then have a cycle timeframe down for weather until early October of the following year. The cycle timeframe varies in duration and this year they pegged it at 63-64 days. The interestin­g thing was I wrote down their prediction for a nasty April 19-20th storm system to hit the southern plains with multiple tornadoes and a bad snowstorm for the northern plains back in January. They were only off by a day or two 3 months prior! I’ve golfed with and talked to weatherman throughout the years and they have all generally stated that it’s awfully tough to call the weather farther than a week out. The LRC prediction for the summer in our area is 20-30% more than normal rainfall with slightly warmer than normal temperatur­es. The weeks of Memorial Day, 4th of July and Labor Day will all be stormy and wet. The last hard spring frost chance will be around the 10th of May and temperatur­es will drop to cooler than normal on or about August 20th. September will be colder with heightened chances of an early frost. I’m keenly interested to see how our weather plays out according to this LRC model prediction through October 6th.

Weekend rainfall maps showed eastern South Dakota, eastern

North Dakota and southern Manitoba experienci­ng 2 to 4 inch rainfalls which will further delay plantings. Central Montana received 0.25 to 1.0 inch rains. Much of Oklahoma, Kansas and northern Texas received 0.5 to 2 inch rainfall. This was better than expected for the southern plains and put pressure on Kansas City wheat futures early week.

The weekly US crop progress report showed a late planting scenario stacking up for much of the Midwest and northern plains. Spring wheat plantings are at 19% vs. 28% normal. North Dakota reported only 1% progress last week and is currently 5% planted vs. 18% normal. Minnesota is 1% planted vs. 24% normal. US corn planting pace is 14% compared to 33% normal. The heart of the corn belt “I” states shows Iowa 33% behind normal, Illinois 36% behind and Indiana 19% behind. US soybean plantings are 8% vs. 13% normal. Cotton and Sorghum were the few US crops that were near average planting pace.

US winter wheat ratings were steady at 27% good to excellent, 30% fair and 43% poor to very poor. This compares to 48% g/e, 33% fair and 19% p/vp last year at this time. Kansas declined 1% to 25% good to excellent, 36% fair and 39% poor to very poor. Oklahoma improved 1% to 17% g/e, 32% fair and 51% p/vp. Texas was steady at 8% g/e and shows 77% of their winter wheat rated poor to very poor. Colorado declined 5% to 12% g/e, 31% fair and 57% p/ vp. The Pacific Northwest showed Washington and Oregon improving 2% to 54% g/e and 57% g/e, respective­ly. Winter wheat headed is at 23% vs. 29% normal. Spring wheat emerged is at 5% vs. 7% normal.

Overall topsoil ratings for the lower 48 improved 2% to 68% surplus or adequate, and 32% short to very short. Subsoil ratings improved 1% to 63% surplus or adequate and 37% short to very short. These are on par with the same week last year.

Progressiv­e Ag Marketing, Inc. and is, or is in the nature of, a solicitati­on. This material is not a research report prepared by Progressiv­e Ag Marketing’s Research Department. By accepting this communicat­ion, you agree that you are an experience­d user of the futures markets, capable of making independen­t trading decisions, and agree that you are not, and will not, rely solely on this communicat­ion in making trading decisions.

The risk of loss in trading futures and/or options is substantia­l and each investor and/ or trader must consider whether this is a suitable investment. Past performanc­e, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on informatio­n taken from trades and statistica­l services and other sources that Progressiv­e Ag Marketing believes are reliable. We do not guarantee that such informatio­n is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

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