USDA’s October crop report initially sent soybean prices soaring higher. The momentum didn’t last Thursday or Friday, as University of Illinois economist Joe Janzen says the soybean prices are in the midst of a battle.
“The question is sort of how does that fit in with the overall global supply and demand picture? We’ve also seen news about big crops elsewhere in the world. So to some extent, we built in a lot of upward pressure on prices with lower yields. Now, what do we do from here?”
As the bulls versus the bears continue the price showdown, Matt Bennett of AgMarket.net says farmers need to seriously consider their options this harvest.
“I think a popular thing to do for producers over the last few years, but especially the last couple years, has been sell out of the field, and then reown it,” says Bennett. “So, you have to ask yourself, do you want to reown soybeans at $14? And do you want to so with corn pushing $7? And that’s a valid question.”
Bennett says many producers sold in advance and do have some forward contracted crops at profitable price levels.
“But what you take to town, you have to make a decision are you going to sell or you’re going to store? And I think for most producers, the easy answer for me is to go ahead and lock a price in and if you want to reown it, there’s so many tools you can use, but let’s not try to overcomplicate things,” says Bennett. " We’re looking at historically high price levels already. I’m not saying that I don’t think we can go higher but locking in a good thing sometimes is the best way to go.”
