The USDA’s annual Prospective Plantings report is due out on March 31st. There’s been a lot of buzz over the winter months of what the acreage mix will be this season.
On U.S. Farm Report, Elaine Kub, author of “Mastering the Grain Markets,” says if you have any type of downside risk protection before the end of March rolls around, you will feel much better because of the volatility associated with that date.
“It’s been eight out of the last 10 years we’ve had double digit moves in corn and soybeans on the March 31 planting date,” she told U.S. Farm Report host Tyne Morgan. “Average move, up or down, is 4 percent.”
During the winter marketing months, Brian Basting of Advance Trading, Inc. said there was a larger than normal percentage of old crop corn being held by producers.
“Get control of your old crop corn inventory—a tremendous amount of risk there if you haven’t priced much new crop corn,” he said. “There are tools you can use to manage both downside and the upside ahead of the growing season in Brazil.”
Watch Kub and Basting on the U.S. Farm Report marketing roundtable this weekend. Check your local listings or watch on the Farm Journal TV app.