Outlook better for soybeans

An ag consultant who spoke at this week’s Farm Assets Conference in Normal does not anticipate a large corn rally at this point but feels there are chances for a soybean rally.

Due to phenomenal demand, things are looking up for soybeans says Matt Bennett of Bennett Consulting.

“There have been very few times in the last five or six years where you didn’t make money selling beans,” Bennett explained.

Bennett believes it is easier to make money on soybeans these days due to good yields and elevated prices. He suggest moving forward with sales on old crop beans and if growers want to stay in the game, a limited risk strategy can be purchased.

When it comes to corn, Bennett says growers with bushels in the bin at home need to be selling the carry in the market. Basis tends to improve as the marketing season goes on.

“It’s the same type of thing that your local grain elevator does.”

For those bushels at the elevator, Bennett suggests selling bushels during a rally and entering into a cheap call option strategy.

“Since volatility has been so low, these strategies are as cheap as dirt – significantly cheaper than storage,” Bennett added.