After the USDA crop report last Friday we have taken any long-term rally out of the cards I believe until after harvest. If those numbers are correct, we are looking at a carry out in Beans at numbers we haven’t seen in decades. The report takes into consideration that the trade war with China will continue this marketing year and hopefully that will change. South America should run out of beans to sell to China in October or November and won’t be able to sell any more beans until February or March. If we can sell beans to China again, I believe we would have a chance to see beans get back to $9.00 or higher.
Corn exports were good this past year, and hopefully, corn exports will continue to be good this next year. With the wheat shortage around the world, maybe we will see a reduction in corn carryout next year and have a chance to see the price of corn going up.
We will be putting our fall Grain Policies on our web page by the end of August, but I am expecting them to remain close to the same as last year.
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