Markets - General
USDA dramatically cut its 2020 average corn yield projection Tuesday, sending futures prices limit up. The 3.8 bu. per acre drop in the national projected yield is the largest in more than a quarter century.
China’s appetite for U.S. corn seems unstoppable. Just this week, daily sales of corn to China added up to a new record.
After corn and soybean prices soared last week once the USDA’s WASDE report was released, grains and oilseeds seem to have taken a different path this week. So, is the grain rally over? Bob Utterback weighs in.
All the major variables were hit in 2020.
We will have to see if President Joe Biden wants to expand Chinese demand. Additionally, we must watch the COVID-19 situation.
Have your adviser compute reasonable 12-month price targets given the latest fundamental and technical information.
The marketing tools to use have little to do with the year or commodity. What emotionally best fits you?
If a good profit margin can be locked in and you can gain revenue as prices move higher, go for it. Looking ahead, I’m watching:
Energy needs and global energy policies will be front and center this year.
Try locking in a floor for projected 2021 production but also maintain marketing flexibility.