2018 began with corn prices above $4 and soybeans above $10, and that changed drastically as we went through the year. Such big price moves are not likely in 2019, according to Farmers Business Network. Many Indiana growers were able to lock in higher corn and soybean prices this spring, but that will not likely be an option for 2019. Kevin McNew, with Farmers Business Network, urges growers to watch carefully for any market rallies between now and next spring.
”Make sure you are storing your crop and looking for marketing opportunities. A 10 cent rally is something you need to move on because it will be a while before we see big price moves.”
McNew says that low prices will spur an increase in demand but that increase will be slow to come. He urges corn growers to look for opportunities to sell before next spring.
“If you can lock in a corn price above $4, that is a price to look at very seriously. With the big acreage number expected next year, it will be hard to see prices above $4 once planters start to roll.”
As for soybeans, McNew says an expected large crop out of Brazil this winter could keep the soybean market in the doldrums for much of 2019.
“The projection is for a 120 million metric ton soybean crop out of Brazil, up from the 117 MMT this year.” He added that will keep the soybean market under pressure.
Of course, all this is if there is not an unexpected development by Mother Nature or the Trump administration.