Owning Corn Could Pay Off As World Stocks Fall 10 Percent

November 30, 2017 12:02 PM

Commodity prices have been low and trading sideways, and 2017 wasn’t a great year for most farmers. Last month, the USDA Economic Research Service (ERS) released data that show the downturn in the ag economy has bottomed, and farm income could be on the rise.

There’s been a lot of discussion amongst farmers if we can compare our current situation to that of the 1980s. As far as supply, Bill Biedermann, co-founder of Allendale, Inc., says it's similar, but the policies in place are vastly different.

“Back in the 80s, the government was paying us to store grain, so we had huge warehouses full with an incentive to keep it there,” he said. “Today we have more of a free market system.”

The fifth round of renegotiations for the North American Trade Agreement (NAFTA) wrapped up earlier this month in Mexico City. As trade officials from the U.S., Canada, and Mexico are preparing for the sixth round of talks in Montreal in late January, several ag groups are hoping some positive headway is made for U.S. agriculture.

Biedermann is hoping these negations, as well as negotiations with countries in the Pacific go well, because of the record supplies of corn, wheat, and rice along with record demand.

He said the world’s corn stocks are down 20 million tons, or 10 percent, from 2016. That’s roughly 800 million bushels.

“If we have just a 2 percent loss in production around the world, that would be a billion bushel loss—that’s half of our carryover,” he said. “It would change the dynamics of the corn market.”

Hear why Biedermann says the downside risk in maintaining ownership in corn is “pretty minimal” on AgDay above.

Back to news




Spell Check

William Legg
Frankton, IN
12/2/2017 05:59 PM

  Please sign me up.

Michael dyche
Rushville , IL
12/3/2017 04:51 AM

  I have been farmer for 58 years had some good years the last few months price of every thing is bad hopefully we are going to have better times

Luis Root
chicago, IL
2/6/2018 07:19 PM

  MOORE LOANS SAVE ME WHEN THERE WAS NO HOPE {mooreloancompany@yahoo.com} Hello everyone in this forum, I am Luis Root from USA, I cannot believe that God really exist not until i was Redeemed and saved from Financial bondage.. l was into financial crisis and needed to pay some bills. l tried seeking help from banks but all to no avail,l also tried seeking help from the internet only to meet scammers who pretended to be private lender and made away with my $15000 and did not get my loan, not until GOD introduce me to Moore Robbinson through a friend who was rescued from financial problem and a loan of $100,000.00 was granted to him by Moore Robbinson, so l took his advise and contacted Moore Loan Company and in the space of one week my loan of $200000 was granted to me.so my advise to everyone seeking for loan at low interest rate of 2% .l am doing this because l am so happy am out of financial bondage and am once again full of joy and life is easy all thanks to GOD and Moore Robbinson. You can contact Moore Loan Company via {mooreloancompany@yahoo.com} OR Text (414) 454-9493


Corn College TV Education Series


Get nearly 8 hours of educational video with Farm Journal's top agronomists. Produced in the field and neatly organized by topic, from spring prep to post-harvest. Order now!


Market Data provided by QTInfo.com
Brought to you by Beyer