Wow, the govt grain report today did the opposite most were expecting, grain prices are gonna be a roller coaster nuts for a while.
The govt says we arent going to plant as many acres of corn and beans as everyone was figuring. And both those crops kinda need more acres, with the way China has been buying.
Sure makes farming seem like a game of throwing darts.
You could have put the same effort and expense into an acre of beans.
Bad weather and you harvest 30 bu, good weather you might get more than 70. Could average 50.
In early and mid summer it looked like markets were dead, with nnalert and govt issues and all it looked like grain prices were going to dwindle to nothing. You could have, and many did, put in grain contracts to sell beans for $8.
At harvest time things had turned around and China was really buying again, and beans were $10. Now after more China buying, poorer crops in South America, and this grain report, you can get $14 a bu and might be higher if we hear of bad weather soon.
Quite the difference selling an acre of 30bu beans at $8 a bu, or selling 80bu beans at $14 a bu.
And either extreme could be the same farmer doing the best they can at planning crops and planning marketing.
Never know what hits you in this field.
Paul
The govt says we arent going to plant as many acres of corn and beans as everyone was figuring. And both those crops kinda need more acres, with the way China has been buying.
Sure makes farming seem like a game of throwing darts.
You could have put the same effort and expense into an acre of beans.
Bad weather and you harvest 30 bu, good weather you might get more than 70. Could average 50.
In early and mid summer it looked like markets were dead, with nnalert and govt issues and all it looked like grain prices were going to dwindle to nothing. You could have, and many did, put in grain contracts to sell beans for $8.
At harvest time things had turned around and China was really buying again, and beans were $10. Now after more China buying, poorer crops in South America, and this grain report, you can get $14 a bu and might be higher if we hear of bad weather soon.
Quite the difference selling an acre of 30bu beans at $8 a bu, or selling 80bu beans at $14 a bu.
And either extreme could be the same farmer doing the best they can at planning crops and planning marketing.
Never know what hits you in this field.
Paul