Although the August 2017 reports from USDA threw a lot of cold water on the commodity markets, look for corn prices to head higher entering September, says Grant Shimek of Black Oak Financial in Festina, Iowa.
“We’re following much like the 1993 pattern in the corn market,” Shimek tells “Margin Minute” host Chris Barron in an episode airing this week on AgWeb.com. “Nothing’s verbatim, of course, but I think we can stay under pressure here up until early September, and we’ll probably get some numbers that are more favorable as far as the bull side on the next [USDA] report.”
More realistic numbers about yield and overall crop production are likely in the weeks ahead, probably setting farmers up for a more “significant turn point” entering September, he says.
In the meantime, look for localized basis opportunities, particularly if the size of the U.S. crop proves smaller than expected. Build your marketing plan based on your circumstances.
“It really depends on logistics and cash-flow needs and financial things as far as how things can be handled,” Shimek says.