Manhart: No big switch to corn
NORMAL – USDA is talking about six million more acres of corn, but one analyst doesn’t expect a big switch once the planters start rolling.
“I see farmers staying with their rotation,” said Pete Manhart of Bates Commodities during last week’s Midwest Ag Expo at Gordyville. “They might switch a 40 or 80 here and there but I just don’t see a big switch to corn.”
Manhart doesn’t expect any big solution with China currently, but says they will gradually buy more from us.
“I think the big thing would be if all of the sudden they do start buying corn because they have never bought much corn.”
Usage is expected to stay strong on both corn and soybeans because the world needs it, but we have quite a bit laying around – especially soybeans. Manhart notes Bates Commodities can help growers figure out when to sell and what they can do to help. They can sell puts and calls and add 10 to 20 cents.
“Right now, you can sell out of the money $11 calls in July and November and some of them may get as much as 20-25 cents that you add to your price,” Manhart explained.
Nick Aupperle of Bates Commodities was also visiting with farmers at the recent Midwest Ag Expo. He says this is the point in the year when growers want to know what they should be doing ahead of the spring as they finish closing the books on 2018. Aupperle urges everyone to keep an eye on China and South America.