Time to Unload Old Crop Soybeans, Corn

 
Time to Unload Old Crop Soybeans, Corn

If you’re holding grain—and you surely are—now may be the time to start unloading it.

“On beans, we’re sitting on an opportunity for old crop,” said Chip Nellinger of Blue Reef Agri-Marketing on U.S. Farm Report this week, noting that soybean prices were 60 cents to 70 cents higher than just a few weeks ago. “I think the bean rally is definitely an opportunity to clean up old beans.”

For corn, priced at $3.782 for March futures late Monday morning, the advice to sell is more about reducing risk than making money. “If you hold much [corn] past this April/May time frame, you’re just gambling on a weather problem,” Nellinger warned. “That could happen, but  boy—I don’t know if I’d bet on that.”

The discussion on U.S. Farm Report, which also included Chip Flory of Pro Farmer and Mark Gold of Top Third Ag Marketing, also discussed spring planting and price trends.

Watch the U.S. Farm Report segment here:

“I think we’ll get the corn acres we need,” said Gold. “If we have good crops, good yields, we’ll have plenty of grain.”

That could be a marketing challenge, at least temporarily. If American farmers harvest another bumper crop of soybeans and corn in 2015, “it could be leading to a perfect storm of seeing some significant risk out here this year,” Gold said.

But he pointedly rejected a bearish long-term outlook. “There are guys out there who are telling you that grain prices are going in the tank for five years. I think that’s absolute nonsense,” Gold said. “These are the same type of people who told you when you had corn prices at $8 that we couldn’t grow enough corn and prices were never going down … With the volatility we see out here, grain prices are not going to go down and stay down. We could have a tough year this year, but I think it’s a one-year thing.”

Talk markets with fellow farmers on the AgWeb discussion boards. 

Back to news


 

Comments

 
Spell Check

BULLDAWG
Greensburg, IN
3/3/2015 07:52 AM
 

  I always chuckle when analysts make comments about "these type of people". Don't they know they are one of those people? I like the names of those who thought corn price was never coming back down? Same goes for those who think it will never go back up. I was taught to say "never say never".

 
 
Derrick
Marshville, NC
3/3/2015 01:50 PM
 

  Market analysts are just like the weatherman they have got to tell us something.Its an educated guess at best ,sometimes they get it sometimes they don't .I have never heard either one say sorry,my bad I got that wrong.

 
 

Corn College TV Education Series

2014_Team_Shot_with_Logo

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!

Markets

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