News

All eyes on the numbers

As the Pro Farmer Midwest Crop Tour moves through the Corn Belt this week – it seems as if the entire agriculture industry is keeping a watchful eye on the yield tallies. 

Brian Grete, Sr. Market Analyst with Pro Farmer says that includes the markets.  “Looking at it – it’s a situation where we don’t have enough corn and we don’t have enough soybeans,” he says.  “However much is taken off of the production side of things from here forward needs to be taken off of the demand side because the current carry over projections for the 2012-2013 marketing year are so tight right now it pretty much demands that they be offset with reductions in use.”

Grete tells Brownfield he anticipates continued market volatility.  “Drought led rallies or supply scare rallies are relatively short-lived,” he says.  “This one has already lived past its prime in terms of historical time frames.” 

Grete says that doesn’t mean it can’t continue and/or won’t continue.  He says it just means they will (the markets) keep going as long as there is money chasing it to the upside.