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Tight ending stocks support commodity prices

Total Farm Marketing Senior Market Advisor Naomi Blohm says tight corn and soybean ending stocks should be supportive to U.S. commodity prices.

“We don’t have a reason to see prices race higher, they didn’t give us that information, but USDA also took away the reason why prices could crash and burn in the short-term.”

Blohm says the U.S. will also need to see an increase in corn and soybean acres this spring to build stocks. While there are many factors, including time, at play in those decisions, she thinks the competition for acres will be interesting to watch.

“A lot of folks are sticking with a regular rotation, in general. Some people are still in a drought situation and those needs are different than others. But we are in a sitaution again where we need a bumper crop in this country and the acres to make it happen.”

In the meantime, Blohm encourages growers to plan ahead for the year, know their cost of production and make cash sales when possible.

USDA’s 2023 prospective planting numbers will be released at the end of March.