To the delight of those selling corn and soybeans and the dismay of end users, high prices will likely stick around for several months.
Corn and soybean prices have dipped since their dramatic solid increase began in the early summer. But overall, prices have seemed to reach a new, higher plateau.
Andy Shissler, Roach Ag Marketing, expects prices to stay high until the calendar turns to 2013.
"We had a small crop last year, so the carry-in for this crop was a disaster. Our stocks are really small. I think most likely the highs stay in and we stay in this high range for the better part of 6 months."
Shissler says he doesn’t believe corn will hit $10 but says there is still a chance a new high could be reached.
Bill Biedermann, Allendale, Inc., agrees that corn prices will continue to find support on the demand side. "End users are still buying corn, not because it is profitable, but because they need corn."
In soybeans, the market experts expect prices to stay high, but not go much higher.
Shissler says China continues to purchase any excess beans the U.S. can produce. "So the price just remains high."
Biedermann believes the current high prices will attract soybean acres in the U.S. and around the world. "I believe the highs are in for soybeans, for many years. If good growing weather prevails next year, there’s no reason prices will go any higher."
Shissler and Biedermann discuss the current marketing situation with Al Pell on U.S. Farm Report.
Watch more with U.S. Farm Report.
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