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Markets call for flexibility

An ag economist says farmers need to build flexibility into their marketing plan.

Brian Basting, at Advance Trading, says markets have dipped as planting progress has improved.

“We did have a pullback here.”  He says, “We had a surge here in new crop corn, for example, about mid-month to just shy of $5 and now it’s pulled back because we did get this planting window opened up.”

But he tells Brownfield a rally isn’t out of the question.

“We got a big weather rally there in late June last year and then we ended up with a record national average yield.”  He says, “December ’23 corn got over $6 last summer for a brief period of time at the end of June. And of course, we all know how cheap corn got this winter then. So, every year is going to have some surprises.”

He says farmers should be prepared.

“Be flexible.”  He says, “Always look to defend your balance sheet. Keep a floor underneath the market but give yourself as much flexibility on the upside, if something changes, to be a participant if the market wants to rally too.”

Basting says adverse weather and outside global influences are the most likely triggers for any potential rally this summer.

AUDIO: Brain Basting – economist @ Advance Trading