The end of June brought us the stocks and acreage report. We didn’t see any wild limit moves as we have in years past, however, we still saw notable changes in our acres and stocks. Bean acres coming down over 2.5 million acres and both corn and bean stocks growing from last year are just a couple of the adjustments we saw on June 30th.
To start the month of July, we saw both corn and beans take a hard-nosedive. Spotty rains across the corn belt and fears of recession aided in pushing the market lower.
There are supports out there to keep our markets propped up. The Russia/Ukraine war doesn’t look to come to an end anytime soon, planting got off to a shaky start, and we are entering the heart of the growing season with hot and dry weather looming.
With that being said, I have a hard time betting against the U.S. farmer and their ability to raise a crop and, year after year, our farmers always seem to find a way to pull through and find themselves harvesting a good crop in the fall. Also, seasonal tendencies are hard for me to look past this time of year. Below, you see a historical December corn chart. We are currently at the time of year where the highs are in, and we are beginning our grinding slide into harvest.
Don’t look past where the market is currently. $7+ old crop and new crop near $5.50-$6.00 are not bad numbers to clean the bin out for or to get another 5-10% sold on new crop.
This market is very volatile, and the farmer needs to be ready to pull the trigger if this market were to bounce back higher on a weather scare, Russia/Ukraine news, etc. Offers are simple and a great way to handle volatility in the marketplace. An offer will capture the price level set by you if the market ever gets there. They are free and they work whenever the market is working.
Please feel free to call any of the Aurora Cooperative grain merchandisers with any questions you may have.