Are Crop Prices Effecting Planting Decisions?

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After grain prices surged in January, many growers are looking at any opportunity to plant. The prices surge, in reaction to the USDA cutting its outlook for global supplies, is also a cause for concern if too many growers jump in and plant more. The commodity markets may start to become over hedged and a crop bubble could burst.

Growers who decide to plant wheat in the San Joaquin Valley take a chance -- planting time for them comes when most farmers are taking a break from farming.

Also a risk is the weather: Winter wheat requires a good rainfall in California and that need must be factored into the crop hedging.