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Conflict rally behind corn and soybean markets

An agricultural economist with Advance Trading says the corn and soybean markets have fallen off their highs of early spring.

Brian Basting says many farmers took advantage of the rally touched off by the Middle Eastern conflict, but…

“The market until last day or two had retraced that entire rally that was linked to the conflict.”  He says, “But I thought that was interesting that the market started at point A, $4.40 per bushel, rallied 40 to 45 cents, and then came all the way back to where it started.”

He tells Brownfield that soybeans have remained relatively strong despite also backing off earlier highs.

“We had concern, needless to say, about the conflict that spurred the oil market and took the beans with it.”  He says, “And old crop beans, they’ve  backed off their highs that they made in late March, early April, but new crop beans are hanging in there pretty strong.”

Basting says outside of geopolitical events, weather is likely the largest market factor in the near term as both the U.S. planting season and South American harvest continues.

AUDIO: Brian Basting – Advance Trading