As the new year gets underway and preparation for planting season begins, having a trusted partner and resource is prudent in the development and execution of a 2018 marketing program for your operation.
According to Advance Trading Inc. (ATI), crop insurance is an integral part of a comprehensive production plan, but it should be incorporated in conjunction with a risk management strategy that provides market flexibility. Since February is the established price projection time period for 2018 corn and soybean crop insurance, be sure to consult with your Big River manager or merchandiser for the proper risk management strategy for your operation.
ATI has provided the initial insights into crop insurance price projections for the month of February with corn being forecasted to be the average of December 2017 corn futures, while the average of November 2017 soybean futures will generate the projected price for beans. December corn numbers could be near where they were in 2017, while November soybeans could be slightly lower. There could be much change, however, over the next several weeks considering the crops in South America are at a critical point and the weather is uncertain.
It’s also important to note that corn and soybean projected prices have been trending lower in recent years as yields recovered following the 2012 drought. Since 2013, the national U.S. corn average corn yield has increased 11.7 percent while the national average soybean yield has risen 11.2 percent.
Other current market news provided by ATI can be found below and is important to take into consideration when developing and executing your marketing plan.
- USDA at its annual Agricultural Outlook Forum on Feb. 22–23 will release updated U.S. balance sheets for 2018/19.
- A few well-respected sources think the USDA will need to lower its Brazilian corn forecast in the coming months.
- Recently there has been selling pressure for soybeans from Brazilian producers.
To continue strategizing the proper market program for your operation and learning how Big River can service your needs, please contact your local Big River elevator.
SOURCE: ADVANCE TRADING INC., FEBRUARY 2018; www.advance-trading.com.