Market Analyst Predicting Soybeans "Starting with a 6"

January 5, 2017 04:05 PM

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.

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Spell Check

Des Moines , IA
1/5/2017 05:26 PM

  Brock is a proven idiot. I'm glad he's calling for $6 beans, that all but guarantees it doesn't happen. Sounds a lot like captain Kirk's $7 corn prediction.

Brinkley, AR
1/5/2017 07:03 PM

  Didn't he say $6.00 beans for 2016 about this time last year?

Monroe, WI
1/5/2017 08:03 PM

  Where do these guys with no skin in the game keep coming from?last years South American crop reports were all false why do we get such shit?with world demand we are always only a blink from 12.00 dollar beans why the bullshit, who pays you guys.Who side are you on .We don't have the pleaser to be wrong for so long waiting to be right