With corn and wheat prices struggling, many farmers are considering planting more soybean acres in 2017. Richard Brock of Brock and Associates, he believes soybean acres will increase from 83 million in 2016 to 87 million this year.
The estimated increase comes with increased carryover. Today, the soybean carryover sits at 480 million bushels. Brock believes with more acres, that number could surpass the 800 million bushel mark.
“It’s so obvious, it’s scary,” said Brock to Market Rally Radio host Chip Flory on Tuesday.
Brock is forecasting the “biggest move of the year in commodity prices” will be the down soybean market, adding that cash soybeans in Iowa could be in the $6 range. He calls this his “optimistic forecast.”
However, he does think this is a time for producers to seize current opportunities.
“An opportunity is not necessarily markets going up, it’s knowing what direction a market is going to go and to take advantage of that marketing,” said Brock. “Forward sell, aggressively price, hedge your production and you’ll have a competitive advantage over your neighbor who does nothing.”
Brock told Flory people need to separate what is “noise” and what is “important.”
“You can listen to the daily and weekly exports and what’s going on in Brazil,” he said. “That’s noise.”
Listen to Brock and Flory’s discussion on the downside risk in soybeans, the two important things to watch and the four major opportunities he sees in the market on Market Rally above.