Kimmel: Volatility to increase
NORMAL – Volatility is expected to increase as we move further into the 2019 growing season.
“The last thing you want to do is get bumped off or spooked out of a position because this thing is going to be quite dramatic here as we go through the next 30 to 60 days,” Curt Kimmel with Bates Commodities told The Central Illinois Farm Network.
The main concern among farmers currently is trying to get a crop in the ground, which has been challenging so far this spring. Prevent plant coverage seems to be a popular talking point.
“It seems unusual for Illinois to be a prevent plant state versus North Dakota or South Dakota,” said Kimmel. “There are ideas that we could see anywhere from 3.5 to 10 million acres of corn and anywhere from 2-3 million acres of beans move into prevent plant.”
Kimmel believes this could tighten up the supply and demand balance sheet as we move through the marketing year. He suggests keeping marketing plans simple by taking advantage of higher moves by establishing a price floor.
“That way if the market goes higher once we get into June or July, go ahead and make those sales or even shop around for a good bid somewhere.”
Bates Commodities in Normal can be reached at 800-779-1515.