BLOOMINGTON – Don’t expect a big lift in the markets until something happens to move those prices back up, such as unusually strong buys from China.
“There is some downside risk in this game but looking at the experience we had going through the trade war, I think downside risk even in beans is limited at this point,” said Dale Durchholz with Grain Cycles.
Hard prices may be hard to come by until weather becomes a factor this growing season. Instead of worrying about where you are on sales levels, Durchholz believes it is more a matter of managing where you are at with the prices we have today.
Given some of the cycle counts on corn that Durchholz has observed, and even on beans, that tells him some moderately higher prices could come at some point in the next couple of months.
“I’m really one that’s not really willing to sell the market down in here, instead I’d say okay let’s put some price targets in.”
If they haven’t already, farmers should get some new crop sales on the books because if there is not a problem somewhere in the world, we will have some real issues. Also, basis difficulties for corn in the fall could be a problem.