Kansas City, Mo. (NAFB) — An Ag Web article says gains in other commodities have convinced at least one analyst that $11 soybeans are possible, even with an average 2017 crop.
John Payne of Daniels Trading says other markets like copper, cotton, and oats to a certain extent, have risen. “Corn has come up a little, as has the stock market,” Payne said. He says farmers who have the capital to do so, might want to hold off on deciding final crop mixes for 2017 “until the market shows its hand,” Payne said. “Soybeans are going to give you an opportunity at some point.”
At the same time, Payne says there is a significant downside possible for prices if bean yields hit near 53 bushels per acre. Corn does remain a strong contender based on data showing that farmers historically like to plant the crop. Payne expects corn acreage to be 91-92 million acres this year. “I understand the arguments against it,” says Payne, “prices certainly don’t reflect it. Given the yield that farmers had last year, if they’re up for rotation, I highly doubt they’re going to switch out.”