It may be difficult to find normal seasonal price weakness in corn futures, says Bob Utterback of Utterback marketing. “However, basis is soft, so livestock feeders may find opportunities in the cash market.”
He expects futures to be strong this spring as the market seeks to buy acres. “We need 90 to 91 million acres of corn next year, up from the 87.5 million we are harvesting this year. With the supply-demand balance we have right now, and some acres possibly going to double-cropped wheat-soybeans, it’s hard not to say ‘What if we have a weather event?’”
Utterback believes feeders may need to buy “robustly” to ensure supplies through next fall.