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Corn, soybean prices going opposite ways
An ag economist with the University of Illinois predicts corn and soybean prices are headed in opposite directions.
Calculating production estimates along with expected consumption, Todd Hubbs says he’s down on soybeans but hopeful corn can recover in the next marketing year.
“I’m looking around $3.90 for corn, but I could see that going higher relatively easy if we see demand bump up and we don’t get a decent crop. So I’m somewhat optimistic on price right now (but) just the opposite on soybean prices.”
Hubbs points to a huge and still growing supply of soybeans globally.
“In my budgets for 2017/18, I had total carryout over 500 million bushels (which) puts a lot of downward pressure on prices. I’m looking more in the $9.05 to $9.15 range for average marketing year soybean prices.”
He tells Brownfield market volatility in the coming months will likely come from weather issues and the USDA acreage report June 30th.
Depending on the acre numbers, Hubbs says there could be good opportunities to lock in prices.
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