It all comes down to weather, acres and yield.
This week we got our first look at what the USDA considers will be planted in corn and soybeans. At the USDA Outlook forum corn acres for 2017 came in at 90 million acres. At the forum they continued to suggest feed usage and exports would be down in 2017 while ethanol production would go up. Add to this Brazil and Argentina are increasing their safrinha corn crop, it will be difficult for the December corn contract to move above $4 unless a weather event is seen.
February will go down as one of the warmest months in recent history for much of the U.S. Here in our area many producers took advantage of the warm weather to get some field work done. There is the potential for an early planting this season. Once again it all comes down to weather. If the corn crop is planted early and no weather event is seen, we could see another good crop. We all know that the only way to reduce supply is lower prices. The outlook looks bearish without weather or reduced acres.
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]terbackmarketing.com.
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