Market excitement continues
NORMAL – Crop prices typically move lower in the spring once farmers head into the fields and the weather is favorable but we are in different times now.
There is large commodity fund interest out there as markets are hanging in there trying to wait for the next big news to come out.
“We could have quite an exciting market here as we move into summer,” Curt Kimmel of Bates Commodities told Carrie Muehling of The Central Illinois Farm Network. “We are not slowing down the demand a whole lot.”
May corn hit that magic $6 level last week and new crop December corn was over $5. Beans were part of the reason for the rally late in the week because of the world vegetable oil market. The crush report was a little light but still strong.
When it comes to the cash grain market, end users are trying to keep the basis firm and attempting to shake loose grain from producers which can be a challenge this time of year with everyone in the field planting. With plenty of grain sold last fall, there is not as much to be sold now.
Many are eyeing the long-range weather forecasts which point to warm weather this summer and a wet eastern Corn Belt and drier west. This means volatility will remain high. Profitability will be good for producers this year if they have the bushels to sell.
“You can put some price floors in and leave your upside open,” Kimmel said. “There are some opportunities to have your cake and eat it at the same time.”
The south has planted plenty of corn but here in the Midwest, we are coming along nicely with soybean planting. Kimmel has heard of some soybeans emerging south of Bloomington-Normal already as the talk seems to be putting those beans in before corn nowadays.