July corn closed up 2 1/4 Friday at $3.31 1/4, up 5 1/2 from last Friday’s close. December corn gained 2 1/2 ending at $3.45 1/4, or 6 1/2 higher week-on-week.
July soybeans were unchanged today, closing at $8.67 3/4, gaining 27 from last Friday. November beans closed up 2 3/4 at $8.79 1/2, up almost 28 for the week.
The big story this week is the return of optimism for corn and soybean prices. Both had decent gains for the week. With July corn closing above $3.30 and July beans ending above $8.60, there is hope that we will see even more gains next week. We’ve seen some decent short covering in the corn market this week, and that has led to even more short covering every day. Our purchases have steadily increased this week, with many using this opportunity to either extend their old crop sales or get them wrapped up. We’re also beginning to see some folks sell new crop. This week, we were able to show a bid of $8.00 for new crop soybeans at our locations, and that got a lot of attention. While we realize that is below where many of you would like to be selling, we continue to encourage people to get started there. Optimism is a good thing, but we also need to be realistic.
For more information about this week, check out our end of the week Bull Bear Banter podcast: : https://landuscooperativeexperience.podbean.com/
Speaking of optimism and hope, whenever I think of hope with regard to grain marketing, it always reminds me of a poster I first saw in my dad’s grain elevator. You’ve probably seen something similar. I call it the “Greed Hope Fear” cycle. Hope is not a bad thing in this context. But, when it leads to greed, it becomes a problem. Inevitably, the cycle ends, prices drop, and we all just “hope” it can get back to that level we wish we would have sold earlier. When it doesn’t and prices erode even further, we reach the bottom (again), and fear sets in. Bushels get priced because we’re all afraid it will drop even more. Then, as prices start getting better, we start to hope again. Then they get even better, and we try to “punish” the market for making us feel bad. Then, greed sets in and we miss another opportunity.
Speaking of opportunity, this week we rolled out a “Grain Pricing Opportunity” program. Our Grain Marketing Advisors and Customer Service Specialists have made and taken many phone calls this week about this. Quite a few people are taking advantage of the opportunity to get some grain priced for June delivery. Many are finalizing their Old Crop sales. We believe this is a great time to get a little more for your farm stored grain.
Did you realize that the 4th of July is only 4 weeks away. How well do you think this crop will look by then? Waist-high? Shoulder high? With the recent rains, humidity and heat, we could be looking at the makings of a monster crop. Don’t let greed blind you to the opportunity that is in front of you right now. Give us a shout, let’s see what we can do to help you get your bins empty, even if you want to leave some of your pricing opportunities open.