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Grain markets hit four-year lows

The co-founder of AgMarket.net says this week’s four year low in the grain markets are likely just the beginning.

Matt Bennett tells Brownfield the USDA’s June acreage report was not friendly.

“The bearish part of the report was, according to the USDA, there’s a heck of a lot more old crop corn sitting around, you know, than what we previously thought.”  He says, “And this year’s carryout is going to be greater than what we previously thought, which ballooned next year’s carry in.”

He also says Hurricane Beryl’s remnants were beneficial for crops, but not prices.

“I did think that we would have maybe a little chance that the eastern Corn Belt could keep prices propped up just due to dryness,” he says, “but then Beryl comes along and your drought monitor is essentially going to be desolate as far as drought goes.”

Bennett says it adds up to a big crop and a tough time for producer profitability.

“Most producers, if they sold all of their corn today and assumed the best yield that they’ve ever had on their farm, if they don’t have any corn sold yet, they’re not going to make money.”  He says, “I think the producer has to understand there’s still risk to the downside.”

Bennett says widespread weather issues or increased demand could turn the projections around.  He says the markets will be watching the USDA’s next round of supply and demand estimates, which are released Friday at Noon Eastern/11 Central.

AUDIO: Matt Bennett – Illinois farmer & co-counder of AgMarket.net