5 Things to Keep in Mind With Corn, Soybean Markets

October 6, 2017 01:41 PM

Corn and soybean markets are tough, something Richard Brock of Brock & Associates have been grappling with. On Market Rally Radio Thursday, he discussed the five things farmers need to keep in mind when it comes to these two crops.

1. The U.S. has record or near-record corn and soybean supplies.
“It’s not impossible, but nearly impossible to get a bull market going in the next nine months with the kind of supplies we have,” said Brock. “When I say a bull market, I mean a dollar up in corn and $5 up in beans. I don’t see that as a remote possibility.”

2. Farmers are going to be “tight holders” of corn and soybeans until the end of 2017.

“The heavy movement came when they emptied their bins to move the old crop in August—that’s what put the bottom in this market.”

3.   Farmers didn’t want to sell old crop corn and put it under DP contracts.
“The grain elevator now owns the corn even though the farmer hasn’t priced it, so the farmer’s going to lose on that one way or the other. I’ve never understood in 40 years why people do that.”
4. There will be more talk of drought conditions from eastern Iowa to Illinois.
“We are unseasonably low on water in those areas right now.”

5. Traffic (or lack thereof) on the rivers.
“The Illinois [River] is impacted by heavy barge traffic because of huge coal exports. The Mississippi River has some areas that are only 7 feet deep right now that’s got barges backed up everywhere.”

Hear his thoughts on the transportation issues on the rivers and what he expects to happen in Brazil on Market Rally above.

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Spell Check

Luxemburg , WI
10/7/2017 04:19 PM

  It's so funny the USDA has been setting these prices since last January. They are coaching the CME.

Greensburg, KS
10/6/2017 08:19 PM

  Over production = low prices. Farmers set some acres aside so the price will go up. Do you really think the price will go up by planting every acre you have? www.afairmarketprice.com

Cochranville , PA
10/6/2017 06:22 PM

  These record supplies you talk about, are they USDA numbers or actual farm supplies numbers? Funny how they USDA stopped calling me once I wouldn't give them numbers anymore. So if it's a record, they dont have my numbers. How do they know from their cubicles since they actually don't put any boots in the fields or bins


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