Higher price moves possible
Corn and soybean prices could move higher as we move through the summer months.
Dan Zwicker of Zwicker Consulting is somewhat friendly toward the markets and does see some pricing opportunities moving forward.
“Some of my longer term cyclical analysis that I watch does imply that we are more likely than not to have more of a late summer or early fall high than we normally do,” Zwicker told The Central Illinois Farm Network late last week.
When looking at seasonal averages, June is a big month to record calendar year highs in soybeans and even for corn part of the time.
“My work would indicate that we are entering a very critical time frame to see what kind of crop size we have the potential of growing.”
Nothing really changed much with last week’s USDA report which is not uncommon for this time of year. When looking at the supply and demand table, they did make some minor changes. Next up is the June 30 report which tends to be really bullish at times or a “drop dead killer,” according to Zwicker. This all depends on what USDA puts out.
Zwicker is glad he is somewhat retired from the ag analysis business since giving advice to farmers today is much different than it was just 15-20 years ago.
“I just shake my head and I’m kind of glad that I’m not in the business anymore because it was difficult,” Zwicker admitted. “It is extremely difficult for farmers to market their grain.”
Circumstances can change overnight. What looks like a good decision one day turns into a bad decision the next.