Some analysts are thinking a bull market is on the horizon after experiencing low commodity prices.
On U.S. Farm Report, Doug Werling of Bower Trading thinks a bull market could be ahead if there’s a disruption “down the road.”
“The frustrating thing about demand markets is they’re great; they support prices when maybe the shouldn’t be supported sometimes because supply is so big, but they’re slower movers to help markets go higher,” said Werling to host Tyne Morgan.
As for corn prices, Werling believes there will be “a lot of cash corn being moved” when old crop reaches $3.90 to $4 a bushel.
While this is a boost for corn prices, some analysts believe soybeans could be in the $6 range come fall. For those hearing this scary-sounding message, Brad Matthews of Roach Ag Marketing tells producers not to make decisions selling based on fear.
“I don’t think it’s fair to the American farmer,” said Matthews. “They make decisions based on that out of fear and panic, and they sell. Then they usually regret those sales.”
For the soybean market, said Matthews, there are a lot of moving parts and world currencies are one of them.
Listen to Matthews and Werling discuss the wheat market and the beef market on U.S. Farm Report above.