Marketing opportunities exist for soybeans, corn


Marketing opportunities exist for soybeans, corn

A marketer and risk management specialist says opportunities are there now for making a profit on soybeans and corn. 

Mike North with tells Brownfield really strong demand for soybean meal has sent prices north of $400 a ton and soybean oil is also trading at multi-year highs. “Just under sixty cents, so crush plants are very profitable, really demanding soybeans, trying to run at full capacity, and that ultimately has put a bid under soybeans over the course of the last month.”

North says the South American weather has been a day-by-day discussion in the markets, with a drier report Tuesday moving corn and soybeans up followed by back-and-forth trading Wednesday with more precipitation in their weather forecast.  North does not expect the weather to stress most South American beans. “Keep in mind that early harvest of beans in the northern-most areas of the continent is going to begin here very shortly, and so as we do, we’re not seeing a lot of stress on that northern crop. The pieces in question right now are the southern-most areas with Sao Paulo being the epicenter of that.”

North says along with South American weather reports, a very key USDA supply and demand report next week may steer market prices for corn and soybeans.North says the U.S. soybean market has high demand, and there are not a lot of beans stored on the farm this winter, but for farmers that have beans on the farm, many are selling now for a dollar more than they would have received six weeks ago.

With fourteen-dollar beans and six-dollar corn, North says farmers need to take advantage of opportunities and take some defensive actions in their marketing plans while prices are good.