“Right now, I think the corn market is trying to figure out the best-case scenario for prices and the worst-case scenario… and we’re working to the middle ground of those two scenarios.” said Sam Hudson of Cornbelt Marketing on Tuesday's AgriTalk After the Bell.
Hudson told host Chip Flory, if more bushels are lost from Brazil’s corn crop or if the U.S. loses some acres from current expectations, the corn market should adjust for the tighter supply. Conversely, if planting intentions were too low and corn acres end up bigger than the 88 million indicated in the Prospective Plantings Report, it may be difficult to work prices much higher than current levels.
“Once we’ve got the Brazilian output figured out and the acreage sorted out in the U.S., then, of course, it becomes a weather-driven market,” reasoned Hudson, “And once we’re into that, it’s difficult to predict which way the money will flow and how aggressively that money will flow.”
On soybeans, Hudson cited the 30-cent, Tuesday-to-Tuesday setback in crush margins in soybeans as a potential headwind for bean prices moving forward.