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Young farmer potential is great

Agriculture.com Staff 02/19/2010 @ 10:07am

I had a marketing workshop in Geneva, NE yesterday. When I got there the gate was locked and there was no one in the building where the meeting was to be held. I had forgotten how fast transportation is when the weather is good and Interstate 80 is dry. An hour before the meeting was to start the host showed up. The attendance was a little less than anticipated. When you have a really nice day after a string of bad weather few farmers want to spend the day sitting in a meeting!

Monday of this week had been about as bad as yesterday was good. I was snowed in that day and did not even try to get to Newman Grove where the meeting was being held.

The big event of the week was Successful Farming's "Farmers for the Future" conference in St.Louis. I came away from there amazed at the potential of the individuals in that group. If those young farmers reach the potential that they seem to have today, we do not have to worry about there being enough food to feed the world in the future.

The upcoming week appears headed to be critical for the grain markets. The charts are at a juncture where prices could go either way. There has been a nice rally in February. That is unusual. After such a bad January, a rebound was overdue. The past few days make the recent strength look like a correction in a down trending market. The other side of the coin is that a minor rally is very common as the focus changes from last year’s big crop to possible planting problems in 2010.

The wild card this year is the problem with quality of the old crop corn that is still in storage. As I have traveled this winter, I find many farmers fearful that there will be a glut of poor quality corn as soon as the roads clear so that grain trucks can get to the elevators and terminals. I have not seen out of condition corn in Nebraska. However, farmers I talked to at the conference this week from other states indicated that there were big problems in the rest of the Corn Belt.

Personally, I will be hauling corn as soon as physically possible. It is snowing again today, so that is not going to happen soon. At this point my corn is good quality. I am more concerned keeping it that way than I am about the price I get when I finally get it to town.

The time is right for more price strength. Just because it has happened in previous years does not mean it has to happen this year. Fundamentals could over power the seasonal trends. Market psychology can cause prices to move unexpectedly. Notwithstanding the gloom caused by the weather, one day the sun will shine, the snow will melt and hopefully prices will rally going into spring.

I had a marketing workshop in Geneva, NE yesterday. When I got there the gate was locked and there was no one in the building where the meeting was to be held. I had forgotten how fast transportation is when the weather is good and Interstate 80 is dry. An hour before the meeting was to start the host showed up. The attendance was a little less than anticipated. When you have a really nice day after a string of bad weather few farmers want to spend the day sitting in a meeting!

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