If you’ve sold corn at the local elevator because your bins are full, there are different strategies for reowning that corn in case prices go higher in 2017.
It is a telling sign regarding demand for a commodity when at harvest, in the midst of higher-than-expected nationwide yields, grain prices rally instead of fall. That’s exactly what is happening throughout the Midwest. Producers are selling beans out of the field since the cash price is much more favorable, and they’re opting to store corn at home.
As futures market volatility continues to thrash and twist, with plunging lows and gravity-defying highs, know which fundamentals to watch.
Ah! Summer market volatility – almost as fun as getting a shot. Last month we talked about ways to protect prices with cash sales or put option strategies, being mindful that the market has a tendency to peak around the 4th of July. I hope you got those cash sales locked in because the entire grain market looks to be headed lower.
It is time to start thinking a defensive mindset to protect prices from this recent rally. These strategies can help.
The next few months may provide the grain-pricing opportunities you have been waiting for.
Gas is currently the deal of the decade.
Early talk from many of the industry's analysts and advisers seems to focus more on the bleak price outlook in grains for the 2016 marketing year. This is due to gluttonous supplies of grains not only here in the U.S., but around the world. I heard one analyst suggest $6 beans and a different analyst suggest $2 corn in the coming year. Before you're scared out of farming due to low, unprofitable prices, let's look at what outside market factors might actually allow for price rallies in the coming months.
Sure, this coming El Niño is supposed to be one of the strongest on record, but do you know what happens after that passes? It's time to start thinking about extreme drying in the form of La Niña.
Harvest progressed quickly this year. The rains held off for most, allowing for an aggressive harvest pace. According to the most recent USDA weekly crop progress report, soybean harvest is now 77%t complete, and corn harvest is now 59% complete. At this pace, producers may be completely wrapped up with harvest, have their machinery cleaned and put away, and be waiting, relaxed, for the football game on Thanksgiving Day!