Rich Morrison of Diversified Services Marketing Group does not believe corn and soybean prices would be where they are at if it wasn’t for Prevent Plant acres this year.
During a recent field day near Lexington, Morrison said it will take time to sort through which acres get harvested this year as USDA will likely make adjustments. The big story during the past month is where investment cash is going as we have seen money moving out of commodities.
“We’ve seen a lot of world cash going to different places,” Morrison noted.
The U.S. dollar continues to rally and bonds have been rallying sharply. According to Morrison, commodity markets are following seasonal patterns. Even with a very unusual growing season, markets have performed as they typically do.
Morrison is positive on soybeans longer term, although a lack of Chinese demand will likely be an issue moving forward.
“If you’re marketing soybeans, it all comes down to Chinese demand,” Morrison explained. “It’s fortunate, in some ways, that we didn’t cut production this year.”
Looking ahead to 2020, Morrison expects to see large bean acreage in the spring.