Let me start by wishing you all a belated Happy Easter, what an unbelievable promise we receive because of the empty tomb.
I always look forward to, and enjoy, this time of year as things begin to come alive. Trees start to bud, perineal plants come alive, calving season is in full swing, and days get longer. Farmers begin to gnaw at the bit as they wait to get crops planted. It’s hard to believe, as I look across snow covered fields today, that by the time I write my next blog in five weeks, corn planting will be in full swing even up here in Northeast Nebraska—we hope.
On Thursday, the USDA will report grain stocks and prospective plantings. This report will direct the market moving forward. In just a few weeks, they will start to monitor the planting pace in their weekly crop progress reports. The market will begin to look at this planting pace and its effect on final yield. This can present the first “weather rally” for 2016 crops.
The soybean market, since just the first of March, has already given us a 55 to 60 cent rally, while the corn market has remained more “range bound”. We have worked with many producers who have rewarded this soybean rally with old crop sales and a variety of new crop contract strategies. We have contracts that can establish today’s market as a “floor” yet leave some additional upside opportunity.
What have you done? What do you have in place to capture profitable sales if we are not there yet? What will you do if the corn market can break out of its “range” and finally move 15 to 20 cents higher? This is an important time of year to have these discussions with your ProEdge Grain Specialist or Risk Management Consultant, as you will very quickly be preoccupied with only one thing; getting the crop in the ground. Get a plan, and be ready with working offers that are ready to fill if the markets gives us the opportunity.
Best of luck, and please be safe as we move into this very busy time of year.