The next real grain market news does not come until the March 31 USDA Planting Intentions Report. Currently we think that the acres will be several million below the planting of last year. Now comes the guessing.
The critical numbers in the Supply and Demand Report are the carryouts. That is, what grain volume do we project to have left at the end of the marketing year?
These are hard times to make decisions, and most farmers have deferred decisions and are just storing crops for higher prices.
We knew when we had high prices that the year would come when the costs did not go down as much as the grain prices did. Now we are there, and it is ugly.
The market was closed Jan. 19 for Martin Luther King, Jr. Day, so now we have to work through the confusion of having no trading for three days.
Corn outlook: “I am not bullish, but I am friendly to the idea of new highs. We can’t have high prices without a 1 billion carryout in corn. We have to look to the new crop for help there.”
The rebound is nice, but grain merchandiser Marlin Clark says it is hard to be actually bullish without solid fundamental news in this country.
Plan a disciplined series of sales that get the grain bins emptied before the rest of the farmers look around and realize they have to empty the bins for next year.
Short week, but lots of activity still happening in the markets.
Speculation about Russian wheat exports seems to be the cause of recent price jumps in the Chicago wheat futures.