Protect downside, keep upside open
WATSEKA – Producers should try to do as much as possible to protect the downside and keep the upside open when it comes to marketing their crops.
That’s the belief of Merrill Crowley with Midwest Market Solutions. Since the U.S. is already experiencing drought issues and facing the possibility of a dry spring, numbers could move in any direction.
Crowley says corn had a great rally and could go up to $3.70.
“It hasn’t seemed like it wants to pull back,” Crowley told The Central Illinois Farm Network Thursday.
When it comes to soybeans, Crowley sees a triangle which is narrowing with the idea the market will move as much as the widest part of the triangle. This means soybean prices could move $1.50 in either direction.
“I think a lot of that depends on the weather in South America. If they continue to have drought in Argentina, I think that will continue to support soybean prices.”
Thursday’s USDA report was considered slightly bearish for soybeans, neutral for wheat and slightly bullish on corn. Crowley can be reached at 815-432-2220.