Market Analysis
Chip Flory warns that as more crush capacity comes online, the soybean market might realize it waited too long to bid for 2024 soybean acres.
What caused the price pressure again this week? Naomi Blohm of Total Farm Marketing by Stewart-Peterson and John Payne of hEDGEpoint Global join U.S. Farm Report to discuss what the market is watching.
We asked seven commodity market analysts to give commodity market outlooks for 2024 With their insights, the bearish market conditions will carry over, with a slightly more optimistic outlook for soybeans over corn.
Dan Basse: “Importantly, managed money is sitting on their largest net short CBOT grain position in four years.”
Naomi Blohm: “The U.S. soybean story remains quite friendly to start 2024 with historically small ending stocks and strong crush demand.”
Peter Meyer says, “Both the corn and soybean markets will need to take their lead from changes in both global and domestic demand given the production shortfall stories have become stale.”
Chip Nellinger says, “Producers should be prepared to be more aggressive than years past in protecting downside price risk.”
“Near term, the soybean market has a loftier perch with a tight balance sheet emerging from supply headwinds,” says Mike North.
“It’s difficult to find anything bullish to say about corn for 2024.” says Jon Scheve.
Angie Setzer says, “With their new trade agreement with Brazil, China is likely to import less corn from the U.S. in 2023.”