Good market vibes from report
Many in agriculture cannot recall a time when there have been four market-friendly USDA reports in a row.
“I can’t remember in my lifetime four positive reports in a row from our government,” Wayne Nelson of L&M Commodities told The Central Illinois Farm Network this week.
Everyone was looking for yield reductions, especially in corn, and those reductions were bigger than initially thought. Also, carryout went down on corn and soybeans.
“This report generally is not a big report as there generally isn’t much going on but this one has been different.”
While December corn has made new highs, prices moving forward depend on several factors, including buying, South American weather and the current La Nina weather pattern.
“For right now, this is a very positive market,” notes Nelson.
This may be the time to consider 2021 crop sales if you haven’t already. Nelson feels if you can get over $10 on soybeans for next year, this is not a bad place to start.
While many would like to see this positive trend continue for a fifth friendly USDA report, Nelson believes there are some good opportunities to finish off some marketing that has not been done up until this point.
L&M Commodities is located in New Market, Indiana and can be reached at 1-800-382-0986.