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Outlook Today

RSS By: Bob Utterback, Farm Journal

Bob Utterback has more than 26 years of experience and offers producers a disciplined approach to marketing.

Corn up, beans down and a cold burst over the Midwest!

Dec 09, 2009
Good day from frigid Midwest. Temps are going to be 10 to 15 degrees below normal as the northern cold moves across the Midwest. This is going to bring some serious snow which should delay shipments for a day or so. The positive side of the equation is the wet fields are now going to freeze up and allow some much needed harvest in many parts of the Corn Belt. 
 
The corn market bounced today off the recent weakness. I don’t see this as a start of any long-term trend reversal. In fact with the weak cash market trend and potential for continued harvest pressure I would not be surprised to see a little more weakness in the market as we head into the end of month and end of year trading. 

Please note: if the market does correct 10 to 15 cents more, it will be set up for a very solid first of year price bounce as many trading funds enact their first of year portfolio realignments.  The numbers that I’m hearing are very big, the only issue is most of the trade knows about the realignment. So will it be the old bullish report/bearish reaction situation. We would strongly recommend catch-up sellers in the corn complex try to sell close to the recent highs if at all possible.
 
In regards to the bean market, many have been talking about a retest of the old highs above $11 as a near term objective. The problem beans are having is near term exports have been solid which is the bull side of the equation. At the same time all indications are the South American crop is off to a solid start which is bearish.  We continue to side with the argument that once we get into the next year beans will start to lose their bullish luster. Our concern still resides with getting a floor in the 2010 bean market with a base price as close to $10 but with significant upside potential if any type of weather event hits the global suppliers. 
If you are interested in a detailed marketing plan outlook call us for a trial to our internet web site.  Ask for Laura at (800) 832-1488 or laura@utterbackmarketing.com.
BEFORE TRADING, ONE SHOULD BE AWARE THAT WITH POTENTIAL PROFITS THERE IS ALSO POTENTIAL FOR LOSSES, WHICH MAY BE VERY LARGE. YOU SHOULD READ THE “RISK DISCLOSURE STATEMENT” AND “OPTION DISCLOSURE STATEMENT” AND SHOULD UNDERSTAND THE RISKS BEFORE TRADING. COMMODITY TRADING MAY NOT BE SUITABLE FOR RECIPIENTS OF THIS PUBLICATION. THOSE ACTING ON THIS INFORMATION ARE RESPONSIBLE FOR THEIR OWN ACTIONS. ALTHOUGH EVERY REASONABLE ATTEMPT HAS BEEN MADE TO ENSURE THE ACCURACY OF THE INFORMATION PROVIDED, UTTERBACK MARKETING SERVICES INC. ASSUMES NO RESPONSIBILITY FOR ANY ERRORS OR OMISSIONS. ANY REPUBLICATION OR OTHER USE OF THIS INFORMATION AND THOUGHTS EXPRESSED HEREIN WITHOUT THE WRITTEN PERMISSION OF UTTERBACK MARKETING SERVICES INC. IS STRICTLY PROHIBITED. COPYRIGHT UTTERBACK MARKETING SERVICES INC. 2009.
 
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COMMENTS (8 Comments)

Anonymous
I find it amazing Collin Peterson wants to police the grain trade. Farmers have finally been receiving descent prices and now he wants to control trades and prices? Is he from a farm state?
12:38 PM Dec 12th
 
Anonymous
Have to agree with 2:16. Corn is becoming a crop where as long as you can get it planted you can harvest it year around. If you need some cash just start up the combine in January or Fbruary and harvest some more.
11:24 PM Dec 11th
 
 
 
 
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