Are the Near-Term Lows In for Corn?
Jan 24, 2014
For now or as I write this blog it seems that December corn may be consolidating a near-term low in the market. A close above $4.50 would certainly show strength and the potential for a move back to the $4.60 level but I continue to suggest December corn is in a sideways trading pattern for now. If you still have 2013 corn to be sold I would wait for a bounce in the market back to the $4.40 level and be done. Call our office if you would like to discuss reownership or revenue enhancement strategies.
(click to see larger image)
December 2014 Corn
SOURCE: UMS Past performance is not necessarily indicative of future results. Although very reasonable attempt has been made to ensure the accuracy of the information provided, Utterback Marketing Services Inc. assumes no responsibility for any errors or omissions.
As for soybeans, with strong exports this week the nearby contracts closed up 8 to 9 cents on the day while the November 2014 contract closed at $11.09 up only ¼ of a cent. With continued good weather and the prospects of a good South American crop one has to consider being an aggressive seller on any bounce in the market. For now nearby contracts may stay firm or bounce on good news but the closer we get to harvest in South America one would have to assume China may begin to cancel orders. Be careful if you are long in the nearby soybeans, one might want to consider other alternatives.
To help producers develop, implement and monitor the various risk management opportunities ahead, we are starting a consultation service where we merge crop insurance with cash sales, options and futures strategies to evaluate and manage risk. If anyone feels they need to put structure into their risk management program 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 firstname.lastname@example.org or email@example.com.
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