The grain markets have seen a nice run since the start of 2017, with soybeans shooting higher. Now, some market analysts question if today’s prices are overdone. While volatility could push prices higher, analysts on U.S. Farm Report say a farmer’s priority today needs to be managing soybean price risk.
“Especially if you're on the verge of trying to make a decision between corn and bean acres,” Craig VanDyke of Top Third told host Tyne Morgan on this weekend’s show. “You have a good month or two to help you decide that factor with a floor under this market.”
VanDyke says farmers may not be able to control the volatility of the markets, but they are in control of acreage decisions for 2017. A deciding factor could be the market direction over the next two months.
“Right now, you have opportunities to manage what your acreage is going to be, and the markets going to help you allow that,” said VanDyke.
“The volatility that we've seen recently has obviously created opportunity,” said Jarod Creed of Gavilon. “We have to make sure we're doing something about this soybean volatility that has created a dollar plus rally in the last short two months.”
He says there are still variables that could change the direction of the market, including weather in South America. However, there are profitability opportunities on the table for the new year.
“These rallies don't come and go every year at this time; this is rare,” said Creed.
He suggests producers keep a close eye on the market and have a solid game plan moving forward.