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Goebel: Put the corn market in perspective

Agriculture.com Staff 03/07/2006 @ 11:18am

I keep looking at this rising corn market but with my increased corn costs wonít this market have to go higher? Afraid I Might Miss A Big Gain If I Sell.

We have to put the market in perspective. The new crop corn market is at one of its higher price highs and indicates some sales should be made. Seasonally we are near the normal time of a market high for the December contract. These alone indicate some sales should be made.

The main thing to remember is the market does not look at what your costs or profit potential may be. We also have been hearing about greater ethanol use taking more corn out of the equation. The market will start looking at several things soon and may correct.

If the crop goes in the ground well the market will assume good yields and it is still looking at the large carry over. Locally the corn basis is very big so the market has plenty of corn at this time. We have to be willing to make some sales when the market is offering a opportunity like this.

I keep looking at this rising corn market but with my increased corn costs wonít this market have to go higher? Afraid I Might Miss A Big Gain If I Sell.

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