Tough marketing year ahead
A University of Illinois ag economist believes this could be a tough marketing year for corn and soybeans.
Todd Hubbs says if growers can sell at a price that looks good, they should take the offer and move on to the next year.
“Rallies I don’t think are going to get legs and be sustainable,” Hubbs said at last week’s Farm Assets Conference in Normal.
We have been in a sideways pattern for corn and there has been strength in beans after the November USDA supply and demand and crop production reports. Hubbs believes there are plenty of supplies both foreign and domestically.
“We’ll see some rallies as we move through this marketing year but I’m skeptical they’ll be sustainable, Hubbs adds.
Hubbs and others in the industry are constantly watching South America, looking at planting progress and weather. He is also paying close attention to exports as we need corn and soybean exports to be strong this year.
The December 1 grain stocks report will say a lot about corn market demand this year. We need a good showing in feed for corn to get the kind of usage to help prices. Hubbs sees prices moving up if there is a drought in South America or here, especially for soybeans.
Hubbs will participate in the upcoming Illinois Farm Economics Summit from the University of Illinois in December, which includes meetings around the state at various locations. He is expected to talk about corn and soybeans. Hubbs also writes a weekly outlook each Monday on the Farm Doc Daily website.