Economist expects continued corn, soybean bull markets
An ag economist says USDA’s recent WASDE report will likely continue bull markets for soybeans and especially corn. The University of Missouri’s Ben Brown.
“The common phrase is you’ve got to keep feeding the bull for it to go higher; where we’re at right now, I say this about several historical bull markets too when they get to this period in the cycle, you really don’t have to keep feeding it,” he said. “It’s going to maintain as long as you don’t change its perspective or its perception.”
He says corn demand has continued to rise even though the market seems to be overvalued based on the fundamentals. Brown says the market will likely continue to be supported at least until…
“The June acreage report,” Brown said. “That’s really the next big thing that could send prices lower, is seeing a huge acreage number for corn in the June acreage number. [But] I’m certainly not projecting that.”
Brown said a large increase in corn acreage would put downward pressure on corn, but he says soybeans are fighting to keep its acres.