After a challenging growing season last year there is still a lot of uncertainty in farm country. President of Top Third Ag Marketing Mark Gold says prices are at respectable levels but everything hinges on one factor.
“These grain markets for the next six months are strictly a function of weather. Forget about demand, it’s all supply side,” he says. “If we put another drought on these crops then we’re going to have $8-$9 corn and we’re going to have $20 beans.”
Gold says a favorable growing season would swing things the other direction.
“We put 98-99 million acres of corn in the ground and we even have below trend line yields but decent yields, we’re going to be choking on corn here.”
A bumper harvest would fill the bins but lessen the value. With prices still at favorable levels Gold encourages farmers to protect the downside by employing risk management tools.