As prices soften, there’s a good chance global demand of U.S. grains will return, say two market experts.
U.S. exports have steadily declined as grain prices reached new highs this year. But, they may start heading the other way.
Jim Hemminger, Top Third Ag Marketing, says corn exports have not been good for several month. "We took prices up to a level where we were not competitive with Brazil, Argentina and the Ukraine."
But, now even other countries are running short on supplies. Hemminger says these countries may not have corn supplies after December and U.S. corn prices have declined. This combination should prove advantageous for U.S. farmers, he says.
"The corn market has more solid footing now than it did a month ago," he says. "I wouldn’t be surprised to see weekly export numbers to start showing some increases."
Jim Bower, Bower Trading, agrees that the export market is showing some hints it may pick up.
All Eyes on South American Weather
Bower says now the markets are keeping close tabs on the weather in South America, for clues on how big of crops will be grown there.
He says specifically the last two weeks of December, all of January and early February is the vital period for crop production. "If weather problems emerge during this critical time, soybean prices, especially, could make a major move."
Hemminger says a lot of major importers are waiting for a good South American crop to bring prices down. "If we do trigger a weather market there, there will probably be a big scramble of people trying to lock in corn deliveries, he says."
Listen in as Hemminger and Bower visit with Al Pell on U.S. Farm Report.
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