The corn market has been relatively quiet in recent months, according to Chip Nellinger of Blue-Reef Marketing, who says some producers have been "put to sleep" by the sideways action. But it's time for those growers to wake up, because there are ups and downs ahead.
“I think we are set up to have some volatility,” Nellinger told Tyne Morgan on AgDay. “I think that’s important for producers to understand. “
Nellinger says the markets have been slow, but that doesn’t mean big swings couldn’t happen. “Look at crude oil,” which has seen some drastic price changes recently, he noted.
“We’re going to have chances [to make money], but it’s important producers have a plan and re-engage with the market going into the growing season,” Nellinger said.
Watch the AgDay segment below:
Why Volatility Now?
Nellinger acknowledged that the market is learning toward the bearish side, but he also noted that could change with little warning. “We know that there are still big pools of speculative money going in and out of these markets,” he said. “The spec money hasn’t left, and when they decide they want in or out, it moves the market quickly.”
Given all the talk about dry weather this summer, 2016 “has the makings of a volatile year," Nellinger said.