From the farm fields of North Dakota to the canyons of Wall Street our favorite farmer Roger Neshem comes to Fast Money to reveal his down home insights on the grains trade.
Corn futures shot up to a record for a second day Friday, driven higher by heavy rain in Midwestern states, a slumping dollar and skyrocketing crude oil prices.
Heavy rains have flooded corn crops in Indiana, Ohio, Nebraska and other states, giving farmers their wettest spring since 1993 and severely delaying planting. Forecasts show the bad weather moving toward the western corn belt states of Minnesota and Wisconsin over the next several days.
As I said back in March I thought it would be a very volatile year and if there were any production hiccups we could see the markets explode, explains Nesham. They have been doing just that.
Now, the corn crop is in big trouble. It’s cool and wet and the crop is behind. I think farmers could come up short on supplies.
Even with CFTC regulation hanging over the markets corn and other grains should go higher. As a result, I still like the fertilizer stocks. I’d look at DuPont and Monsanto, Neshem concludes.
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