Crowley: All about demand now
WATSEKA – Demand is the big factor when looking at the recent spike in corn and soybean prices.
When prices pushed higher last week, there were enough farmer sales, especially for corn, to stop each of the rallies.
“On the soybeans, I’ve got projections at $9.97 and that was obtained on Friday. The next projection I have is $10.28,” Merrill Crowley with First Choice Commodities told The Central Illinois Farm Network this week.
Crowley notes these are just his best guesses as to where prices could trade. He recommends having a plan in place in case you don’t make those prices. Crowley feels we need to stay competitive in the world in order to keep the business coming our way.
The demand has always been out there, according to Crowley, but the latest decline in the dollar was basically followed with declines in Brazil, Argentina, Russia and Ukraine so we really didn’t gain much in the world status.
Following the most recent USDA report, there will only be minor changes until the final production report in January. Since not many changes are expected, the main thing to concentrate on is demand. A grain stocks report is due out Sept. 30 with the next Supply and Demand report Oct. 9.
Crowley said prices reacted bullishly to the most recent USDA report but stocks aren’t necessarily bullish – in fact, the corn stocks are actually bearish.
“The key to our prices going up is the demand,” Crowley concluded.
First Choice Commodities is located in Watseka and can be reached at 815-432-2220.