Looking ahead, one should be cautious and have some hedges in place.
Mr. Trump has been our president for one week and he certainly has been busy. It does look like he is trying to accomplish his campaign promises. Looking forward there is the potential for some negative backlash with the thought of a border tax. Also if Mexico who buys almost 30% of our corn production decides to go elsewhere, it will be difficult to see a spring bounce with the ending stocks we have. For this reason, one should be cautious about waiting to sell old and new crop corn. One should watch exports as an indicator for trend and if we have a normal planting season this spring, it will be difficult for the corn market to bounce unless with see weather issues during pollination.
As for soybeans, as long as exports continue to stay at or above expectations and the potential for trade wars is just that, the market should stay somewhat range bound. Bottom line the next couple of months will be volatile with weather being the main indicator for trend.
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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