East central Iowa, Camanche, Iowa | It seems to me that the market is taking a cautious "wait an see" attitude given current old crop supplies and demand. I believe the market is trying to balance a known (old crop) with a potential decrease in in new crop supplies to avoid a dramatic rise in prices. If old crop supplies and/or demand were dramatically different we would be seeing a lot more volatility in this market.
As the new crop potential continues to become more evident the market will have time to adjust. This helps the end users adjust their pricing and give their customer a chance to absorb slow pricing increases.
From a marketing standpoint, I am taking a cautious but aggressive approach to this corn market. I have adjusted my yield expectations and cost of production accordingly. When I see the opportunity for good cash flow with a small profit I am pulling the trigger.
I am not waiting for this market to jump again like it did recently but I do see a slow steady rise over the next month as new crop potential becomes more evident. After that, it may be after harvest once the potential become a reality. |
Guess I'll be the unpopular one
