Not to sound like a broken record, but once again prices have rallied overnight in both the corn and soybean futures markets after a big day yesterday. The story is still unchanged from before as we deal with a shrinking balance sheet and a demand sector that won’t give in. With nearby corn futures leading the charge, one must wonder how creative the market can get with alternative feed grains, particularly wheat. There are only so many countries that can grow and export corn, however, if wheat starts to work into rations? That list can really expand (if the price is right) for world wheat acres to take center stage and maybe curb the enthusiasm of the corn market.
Yesterday afternoon our planting progress report was released, showing U.S. corn (and Iowa corn) a touch behind average while U.S. soybeans (and Iowa soybeans) a touch ahead of the average for this time of year. Maps below.
Overall, once again today we look for higher prices (at least to start the day), with continued volatility. The air is getting a little thin up here on price and it’s easy to get caught like a deer in the headlights wondering what to do. This is a good time as a producer to remind yourself what your “job” is when it comes to grain marketing – the job description may simply come down to staying disciplined, knowing your costs, and focusing on managing risk. Some years of course are easier than others in that regard! As you all know, there are two ingredients to $$/acre: price/bushel and bushels/acre. The market is giving us great opportunity on price/bushel; what’s left after that? Get out and maximize the bushels/acre. The mantra of “you can’t go broke selling for a profit” could be the daily affirmation needed to wade through these wild markets.
Corn is 7 to 12 cents higher
Soybeans are 10 to 20 cents higher