It is time to pay close attention to the Ags. The south American weather is giving a opportunity to producers that may not exist. Beans are getting a ride on Corns coattails here. Bizarre to me the Corn has not moved that much. The weather down south has had a impact on the corn production. In contrast the Brazilian bean crop has gotten larger while Argentina has declined. In the long run it is not material. The Global carry continues to grow. the production is LARGER than demand. Even with demand at a record. Point. We reached $10.15-$10.20 basis nov. The hedging should be underway. Any rallies from this point need to be used as opportunity.
The Corn has a near term low in place. The rally could have a bit more. The losses in the S Hemisphere are significant. The next USDA report could show a decline in Corn Carry. This would be significant and signal a bit more strength in Corn. Now, I have said no runaway bull. Just a market that is gaining a different perspective that has some friendly overtones. Look for a move in dec 2018 to $3.96-$4.02. This is the opportunity to get a comfortable amount of sales on the books. The summer could present further opportunity. A sure thing today though makes economic sense. $10.20 dec 2019 is worth taking a look at as well.
The state of the union was a victory lap for the Presidents success during the first year. No major Ag related scenarios played out.
Be Well