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Many producers taking advantage of market rally
A marketing expert says many producers have been taking advantage of a recent rally.
John Heinberg with Total Farm Marketing says USDA’s January supply and demand report triggered many corn and soybean sales. “Bringing that corn carry-out down to 1.54 billion bushels, that was a big chop, and that was the largest yield reduction on the January report in history. Now, the markets acted very nicely to that.”
Heinberg says the corn market still has some opportunities for farmers. “Maybe some of that upward momentum is starting to slow here, but you know, at least we’ve got some friendly numbers and guys have still got some bushels. Here’s an opportunity to maybe move a few here, you know, and reward this rally.”
Heinberg says weather in South America is slowing the harvest and supporting soybean prices. “We’ve had a couple of other things happen in the last couple of days, just some bigger events. China is looking at some restrictions on some quality standards on terms of Brazilian beans, so that’s giving us a little support in the market. I think that’s more of a temporary thing.”
Heinberg says President Trump’s freeze on regulatory issues put the 45Z tax credits on the back burner, which is having a negative impact on the soybean oil market.
Audio: John Heinberg discusses the recent rally and many more market topics with Brownfield’s Larry Lee
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