This week?s report was mostly neutral. New crop sales are performing at a great pace, but old crop isn?t doing nearly as well. Allendale commodity broker Greg McBride said the bar for old sales has been set so low that anything above zero looks good at this point.
Overall, corn and beans have been a bit disappointing recently. McBride said there was a flash sale to China yesterday, but that still doesn?t add that much strength.
The drop off in old crop sales was especially surprising, given that we are getting into the end of the marketing year. McBride said we could potentially miss the USDA?s export sales goals if those sales don?t pick up again soon.
With the incredibly volatile weather market we?re in right now, we could see commodity prices drop even further. That?s why it?s important to hedge and offset some of that risk. McBride provided some advice for Iowa producers.
The team at Allendale can be reached by calling 800-262-7538, or you can visit allendale-inc.com.
