Looking forward to 2017 with the potential for improved yields and weather.
The holidays are almost over and we are about to start 2017. Many producers still have corn in the bin with prices below value. They are frustrated and hoping against hope a bounce will be seen in the new year. Corn seems to be in a sideways twenty cent trading range with the low being $3.41 and the high being $3.652 basis the March contract. Depending where the producer is located, the basis varies and it makes it difficult to achieve a price above value.
Yields are improving due to science and it almost seems as if we are over supplying demand. There will always be demand but without weather or some form of reduction in production it would seem corn is at value. The funds are also short corn so it may be difficult to get prices above $4 to $4.50 without some interruption in supply.
2017 looks to be as volatile as 2016 with just as much frustration. Producers will have to be vigilant with their marketing and have the ability to adjust their marketing plan when needed. We hope everyone has a safe new year and look forward to helping you in the new year.
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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