Based on Friday’s USDA reports, producers should get soybeans priced and plan ahead to capture corn opportunities.
“Whenever you look at this bean situation, it tells me that we need to be locking in profit,” notes Matt Bennett, Total Grain Marketing, during the U.S. Farm Report Market Roundtable. “You’re looking at where we could have ending stocks significantly higher than what we’ve had the last couple of years. That’s debatable. But if that ends up coming to pass, we’re going to be wishing we had more beans sold.”
“As far as the corn goes, I still feel like this is a gift. We’ve had a huge rally from that early winter timeframe. Guys were scared to death back then, and now they actually have a little comfort. I’d go ahead and lock some in and then I’d want to stay long calls, if I need to, to cover some of those sold bushels.”
Those bushels can also benefit from a review of other marketing strategy components, adds Brian Roach, Roach Ag Marketing Ltd.
“Look at your crop insurance trigger prices,” Roach says. “Decide if buying options to cover what you’re not going to sell before harvest makes some sense.”
In addition to affecting marketing plans, Friday’s reports will affect perception of corn demand.
“Several months ago, we were looking at a 2 billion carryout,” Bennett explains. “That’s what guys were projecting. Now we’re down at 1.14. It’s a lot tighter than what it was. Cheap prices have kind of cured cheap prices in this scenario. To me, I don’t know that it’s concerning. It’s just a really nice thing for us to see. The demand has bounced back.”
Click the play button below to watch the complete U.S. Farm Report Market Roundtable discussion, including more analysis of the USDA reports and the wheat market:
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