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Selling opportunities evaporate as commodity prices plummet

Selling opportunities are plummeting alongside corn and soybean prices.

Southwest Minnesota farmer Matt Widboom says he’s alarmed by the $1.30 cent drop in soybean futures and $.40 to $.50 cent losses in corn the last three weeks.

“I hate to be in that pray-and-hope part of the marketing plan, but I’d say that’s where we are with a little bit of the old-crop corn that we haven’t moved.  A lot of that has to do with how many cattle we’re going to have on feed as we get towards fall.  From a soybean perspective, we were able to get all the old-crop moved and did move some upcoming bushels.”

Trade uncertainty combined with strong U.S. crop condition ratings has weighed heavily on the market.

While he’d welcome a seasonal rally, Widboom tells Brownfield the low starting point is discouraging.

“Historically, we talk about that 4th of July date and the market rally before that as far as being able to sell some products.  All the market professionals still expect some kind of rally, but now it’s a matter of how low we are when we do make a bit of a bump.”

He says futures prices were probably a bit too high early this spring and are now too low, so Widboom hopes the market eventually works its way back to the middle.

 

 

 

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