December 2014 corn futures closed Friday at about $3.72 per bushel and have been above $3.60 more than a month. That’s after they had tanked to $3.20 earlier this fall. Some contend the rally has been caused by harvest delays. But Darrel Good, University of Illinois ag economist, believes the rally is likely due to anticipation of fewer harvested acres.
Soybean growers should consider taking advantage of the nice rally, said Chris Hurt, Purdue University ag economics professor.
“I think this is a good selling opportunity. It’s about as much recovery as we can expect in the short run. Futures at near $10.50 is a whole lot better than $9.”
Michael Slack is taking a more diversified approach to getting his corn and soybeans marketed. He’s leaning on two separate entities: one for its advice and the other for grain contracting programs. One segment pools grain with other bushels to demand a better price from big buyers, while the other offers the Kansas grower periodic sell-period notifications.
Corn futures have reversed a three-month downward swing to make about a 40¢ per bushel climb since the first of the month. And soybeans can take much of the credit for it, says Craig Turner, analyst for Daniels Trading.
Low soybean, corn and wheat prices have ag lenders nearly as concerned as growers heading into the peak of harvest and 2015. They’re also worried about reduced farm income, price impact on land costs and whether the rail-car shortage in northern states will impact grain movement elsewhere, says Dan O’Brien, Kansas State University grain marketing specialist.
When corn was $5, $6 or even $7 per bushel, why didn’t I sell more? When soybeans hovered in the teens, why didn’t I pull the trigger? With 2014 harvest prices projected below $3.50 for corn and $10 for soybeans, many farmers are asking these questions.
Freeze warnings have some worried – but the sub-$10 per bushel soybean price is more of a concern for a huge crop expected to hit the bins this fall. USDA’s Thursday forecast of 3.91 billion bushels surpassed the August projection of 3.81 billion. New-crop ending soybean stocks are projected at 475 million bushels. All those numbers helped keep downward pressure on soybean prices.
It sounds like a broken record, but soybean futures continue their downward slope. Good weather and projections for a big crop that will swell supply numbers are more than bearish on prices, notes Dan O’Brien, Kansas State University Extension ag economist.
“I’ve learned to put more time in producing, trusting my grain elevator to do much of the marketing,” says Steven Albracht, a Hart, Texas, grower who has a corn, cotton and triticale rotation, all under irrigation. Albracht knew the corn pipeline would eventually refill and put pressure on prices. That’s why he made sure his 2014 corn was being marketed while he was on the combine cutting his 2013 crop.
Good pollination, good weather and a projected average yield that will push 170 bushels per acre – or more – are putting extensive pressure on corn prices. But will they crash through $3 at your local elevator? It’s not out of the question, says Ed Usset, University of Minnesota grain marketing specialist.
New-crop soybean futures prices have plunged from $12.50 per bushel in late June to $11 or below in three weeks. They closed down 9 cents at $10.85 Friday. And there’s no sign they will turn around anytime soon, says Jim Hilker, Michigan State University Extension ag economist.
Unlike new-crop corn futures that appear to have settled into a seasonal slide pattern, new-crop soybeans have seen less downside movement. Still, market analysts feel getting up to 50% of your crop marketed at above $12 per bushel should payoff if a big crop comes in.