The Buzz: Marketing Opportunities Still Exist For Crops
Outlook for prices is fairly positive.
Published: Jun 18, 2009
While futures markets remain under the influence of outside factors, especially a volatile U.S. dollar, marketing opportunities still exist, in both the long and short term. The outlook is still fairly positive for prices, despite all the volatility seen recently, according to the Farm Futures marketing team of Senior Editor Bryce Knorr and Market Analyst Bryce Knorr.
Both corn and wheat have good really potential into 2010, says Suderman, while beans remain a powder keg due to historically tight old crop supplies. In the short run, a stronger dollar could limit rallies, but Suderman expects the greenback to make another leg down eventually, giving futures another shot in the arm.
In the meantime, producers can consider taking advantage of some of the peculiarities seen in this year's markets, says Knorr. To guard against weak new crop soybean basis, the traditional November 2009/July 2010 carry trade can be bear spread. November is trading for a premium to the deferred, an unusual occurrence. By contrast, Chicago December wheat is trading at more than full carry to the July, providing opportunities for farmers with storage to roll hedges at a very attractive spread. Basis for soft red winter wheat could eventually tighten if spring and summer rains hurt quality.
Knorr also reminded producers to report their 2009 planted acreage in Farm Futures current online survey.
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Tagged: winter wheat