Yesterday’s Crop Progress confirmed harvest should be almost complete by Thanksgiving. The bins are overflowing and producers really do not wish to sell at the $4 level. Many will be hoping for a bounce after the bin doors shut or after Thanksgiving to get some more sales done.
In our opinion it may be difficult to see any more than a 20 to 25 cent rally in corn. Our recommendations for producers with forward sales on the books in the Dec should roll forward to capture carry. We do not encourage significant off farm storage. Essentially, after cost your net gain will be limited.
Our focus is on soybeans, with continued good weather in South America and the higher price for U.S. soybeans, China may begin to limit future sales. Now with harvest almost complete one must begin to consider marketing strategies for the upcoming year and decide where target selling prices should be set, the form of sales to be made and how to protect your risk. Our beginning target price for November 14 soybeans is around $12.
If anyone has questions and would like to discuss marketing strategies, call Bob or Laura (1-800-832-1488). We will also try to answer questions in upcoming blogs and we welcome emails to [email protected] or [email protected].
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