COVINGTON, Indiana – There appears to be some bright spots in the corn market but soybeans are a different story.
Those speaking on the corn panel at this week’s All Day Ag Outlook Meeting at the Beef House feel good things can come out of a Chinese deal giving corn prices a boost. Between energy needs and the EPA looking to get E-15 in place for summer, there is plenty to be excited about.
“All of those things are good for the corn market,” said Wayne Nelson of L&M Commodities. “We are going to have moisture so there is not going to be a drought to start the year.”
When we see bumps in corn prices, Nelson urges growers to take advantage of the situation.
Curt Kimmel of Bates Commodities is more optimistic on corn than soybeans. He points to the strong usage which is more than we are producing.
“It is going to be important to have those extra acres and have a good yield this coming crop year,” Kimmel explained. “I think overall demand is strong underneath and our livestock numbers are strong.”
Kimmel said even though the ethanol grind is slowing down, it is still fairly strong. He sees good potential for robust export demand and thinks China is still on track to build ethanol plants which will be fueled by corn.
Mike Zuzolo of Global Commodity Analytics and Consulting wonders when wheat is going to bottom since he tries to connect that to the price of corn. He believes we need a low in the wheat market to come in the aftermath of a trade deal with China.
“Time is not on our side in agriculture if we don’t get this trade deal done,” Zuzolo noted.
Many are less optimistic on soybeans since we have a lot on hand and the carryover is high, although bean meal has been strong all year and Chinese feed companies want to buy U.S. beans.
“We are hoping that at least in the next 18 months, this Chinese deal can actually push more exports to China than what we’ve been looking at,” Nelson added.
This week’s All Day Ag Outlook Meeting was sponsored by WILL Radio and Illinois Public Media.