Analyst: "We Need Wheat Acres," Resiliency of Markets

January 5, 2017 12:56 PM
wheat field

Commodity markets have faced tough times, but have always proved to be resilient.

On Market Rally Radio Wednesday, Karl Stetzer of MaxYield Grain Cooperative discussed the current market climate and its relation to the expected corn-to-soybean acreage ratio.

“Tell me something negative about corn, soybeans and wheat that we don’t know already,” said Stetzer.

Listen to Stetzer and Flory’s full discussion and how the U.S. “can’t not plant a wheat crop” on Market Rally above.

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Spell Check

Greensburg, IN
1/6/2017 07:48 AM

  It is a surprise you guys are able to keep your breeding weight as you talk out both sides of your mouth's. We don't need corn acres, we don't need bean acres, and we certainly don't need wheat acres. Beans rallied due to Argentina flooding last spring (their fall). Granted demand is there on beans, but the shift to Southern Hemisphere is vastly approaching. However I am surprised beans held in there as well as they have... I guess nothing impossible, but to see 40 to 50 cent rally on corn on thin air is just plain silly. Give us a wet spring or hot/dry summer - then yes. These statements made in the podcast were just wishful thinking based on "one's feeling". Things like we're overdue, or if market isn't going down then it has to go up are absurd. Corn been sideways for 12 months for a reason...we have too much. Market needs a catalyst and that could be a wide range of factors, i.e. weather, govt, macro's... Specs are still enamored with equities, and are absent the commodity market. Until that along with the U.S. Dollar changing direction, I wouldn't expect much macro influences. Prices will rally at some point, but I don't see the next 30 days as the window. If it does then I will be selling like a mad man cause I take an early present.

Chester, OK
1/6/2017 04:42 PM

  If wheat doesn't go up I guarantee there will be a whole lot less farmers in Oklahoma. It's flat pathetic what I had to sell my last crop for which was the most bushels I've ever sold but somehow the least amount of money I've ever sold a crop for... I think it cost me $40 an acre and hundreds of hours of my time to help feed the world last year, without a big change I'll loose my home I guess that shows how much my work is appreciated.

Western, NE
1/6/2017 11:14 AM

  Huh? Talk about repeating the obvious. Nothing is going to change this market until we get outrageous demand, a serious weather scare or interest rates jump 1,000 basis points. We might get a "dead cat bounce" because funds or indexes are profit taking or realigning their positions. Don't see right now any other reason. If you pull China's stored commodities off the playing field--which they should be--then what kind of real stocks to use ratio do we really have worldwide? I've not read recently where China has ever been an exporter of corn, wheat or beans. Maybe they do, but it just doesn't seem to get enough air time to make their stocks relevant in the world market. Bulldawg explained things fairly well.


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