Tis the season to make some sales
A market analyst suggests corn and soybean farmers should follow Santa’s lead by making deliveries over the holidays.
AgriVisor senior commodity risk analyst Karl Setzer says commodity prices have taken off since the first of December.
“Corn futures above $6 (and) we have very good basis levels in the country as processors want to extend their coverage (so) you can get $5.75 corn up to $6 given your local basis. Very good values.”
He recommends turning some inventory into cash and tells Brownfield that goes for soybeans too.
“We’re starting to approach some of the highs we had last summer. And while we do have upside potential, we still need to reward this market.”
Setzer says that’s especially true when you consider another black swan event like a new COVID variant or an inflation adjustment could flip the market in an instant.