If exports don’t pick up steam in the coming months, the “extra supply” from this year’s harvest will stay on U.S. soil.
Cattle futures have come to life yet again. Demand, and demand alone, is the sole reason for higher prices. Domestic and export demands are solid as packers gear up for holiday needs. At the end of October, beef prices increased substantially suggesting boxed beef prices on Friday, October 27, closing at $203.30. This is the highest beef market since early August.
Quit looking out your backdoor. There’s more to the price of corn, beans, and wheat than the yield out in your fields.
Learn about the nine fundamentals I continuously monitor, any of which can tip the balance scale.
Sick of these corn prices stuck in a rut for NINE months? Yes, it HAS been that long. This corn price is seriously STUCK at a 35¢ cent trading range since October 2016! What gives? Part one, as you very well know, is the overall fact that the U.S. grew a record crop in 2016. Ending stocks have been more than ample since harvest. Even though farmers are still moving old-crop corn sitting in bins since fall, for the time being, there is plenty of corn available in the U.S. and around the world.
Marketing your grain can be an emotional roller-coaster. Let’s take the emotion out of the equation and explore historical trends.
While the grain market talk currently focuses on planting weather in the U.S., I can’t help but keep an eye on U.S. and Chinese economic situations and currency values.
People ask me often, “So, what are those soybean prices going to do?” My simple answer is that Mother Nature has more to say about it than I do! Currently, the outlook for soybean prices around the industry is more of a gloomy forecast than it is sunny. Rightfully so considering the U.S. is expected to plant 6 million more acres of soybeans compared with last year. With current U.S. ending stocks for soybeans sitting at 445 million bushels, we’re at the most comfortable level of supply cushion in a decade.
Ignore the “"planted acres" chit-chat, and focus on these three big things as planters begin rolling this spring.
What do higher corn futures mean, and what does the future hold for producers still dealing with last year’s harvest conundrum?