WATSEKA – Higher crop prices like we saw early in the summer could return according to one market analyst.
“I still believe we are going to see higher prices up near levels we saw this year yet to come in corn and soybeans,” explains Merrill Crowley of Crowley Commodities in Watseka. “To take advantage of that, you’ve got to keep ownership.”
In order for the market trends to change, Crowley is looking for closes above $3.45-$3.50 December corn, $10.20 November soybeans, and $4.25-$4.30 December wheat.
“If we get above those, I think we’ve got a really good chance of a change.”
Crowley says the lows may have already come and he doesn’t know what else can be thrown at the market which is considered to be bearish.
“We’ve got yields, total production and storage issues. That is old news now. There is another reason for the lows to be in,” Crowley added.
The continuation of the 2016 harvest could put the markets in a sideways trading pattern and the final weeks of September tend to be the most bearish of the year. Crowley notes the northwestern Corn Belt continues to get hit with rain but things look much drier for the remainder of the region.