By Jon Scheve, Superior Feed Ingredients, LLC
With harvest in full swing around the country, the markets are watching.
Corn rebounded off the lows last week, but still it remains in the tight trading range of $5.10 to $5.40 it has been trading in for seven weeks. Some of this can be attributed to the recent wheat price rally in this country. Also, for the first time in several months China’s domestic corn price is lower than the price levels of Chinese domestic wheat. This could cause a demand increase for corn for feed should the price trends continue.
Corn yield reports throughout the U.S. continue to be impressive and suggest the national yield average could still increase. If so, this could be an anchor to prices. On the flip side, Argentina’s spring planting is extremely dry and the potential for upcoming weather issues from November through March could provide the corn market some upside potential. I expect corn will remain range bound at current levels until harvest is over and more is known about the growing conditions in South America.
U.S. beans are expected to have a very large harvest. Despite prices rallying nicely off the lows earlier last week and announcements for increased exports, the pace will need to improve more for prices to rally much further. Plus, there are concerns over Brazilian soybean values being nearly 70 cents less than U.S. prices for late February shipments and beyond. This could mean that beans will be range bound for the next couple of months between $12 and $12.50.
Please email firstname.lastname@example.org with any questions or to learn more. Jon grew up raising corn and soybeans on a farm near Beatrice, NE. Upon graduation from The University of Nebraska in Lincoln, he became a grain merchandiser and has been trading corn, soybeans and other grains for the last 18 years, building relationships with end-users in the process. After successfully marketing his father’s grain and getting his MBA, 10 years ago he started helping farmer clients market their grain based upon his principals of farmer education, reducing risk, understanding storage potential and using basis strategy to maximize individual farm operation profits. A big believer in farmer education of futures trading, Jon writes a weekly commentary to farmers interested in learning more and growing their farm operations.
Trading of futures, options, swaps and other derivatives is risky and is not suitable for all persons. All of these investment products are leveraged, and you can lose more than your initial deposit. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction. The information provided here should not be relied upon as a substitute for independent research before making your investment decisions. Superior Feed Ingredients, LLC is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision. The contents of this communication and any attachments are for informational purposes only and under no circumstances should they be construed as an offer to buy or sell, or a solicitation to buy or sell any future, option, swap or other derivative. The sources for the information and any opinions in this communication are believed to be reliable, but Superior Feed Ingredients, LLC does not warrant or guarantee the accuracy of such information or opinions. Superior Feed Ingredients, LLC and its principals and employees may take positions different from any positions described in this communication. Past results are not necessarily indicative of future results.