Farmers hoping for a strong rally in corn prices this winter may want to stay cautious. Jim Anderson, of North and Company, says growers should be cautious, as market conditions indicate a slower path upward.
“Everyone is talking about the rally we had last year back to $5 corn in March, May, July, and futures in February. Can’t tell you that’s impossible,” says Anderson, “but I also can’t say, yeah, shut your eyes and wait for that… This crop is way under-marketed compared to last year, and that means there’s more tonnage to chew through — and bills to pay.”
He notes patterns from the past year have strayed away from tradition..
“Everyone gets in tune to the spring rally seasonally- May, June, is the seasonal high most years, that’s correct,” says Anderson. “Well, this year, it was February, you know, it just came to a screeching halt.”
Anderson adds that insurance is a tool farmers can use to ensure a safety net if prices do drop.
