The market was choppy this week as there were feelings little progress was being made with China and South American weather continues to improve.
“It’s going to be hard for us to get a rally sustained if they have a very good crop in South America,” Wayne Nelson of L&M Commodities told The Central Illinois Farm Network Friday morning.
We continue to see harvest progress issues here in the U.S. – especially in the northern states like Michigan, South Dakota, North Dakota and parts of Iowa. There are problems with test weights and high moisture levels.
“There is a lot of corn left in the field and we don’t know what condition it’s in or if it will be able to move in some of those places before spring,” Nelson adds.
Local harvest progress was at a standstill for a brief time this week following the rain event. Those growers left with crops standing in the field are hoping for more cooperative weather to finish out the season.
The biggest issue the ag industry is monitoring is whether our trade negotiators will head to China next week to get something settled for phase one of a trade deal.
“A lot of times, we’ll see a little rally going into Thanksgiving and if they would go over to China, maybe that could put together a little rally for next week,” Nelson noted.
Nelson recommends selling some corn and handing it off to the professional elevators to capture good basis. We are seeing a very high basis currently compared to normal.
“If you feel like you need to replace it, come back in and buy a call option or just do a basis contract.”