According to market analysts, it’s difficult to build a bullish case for corn and soybeans because the U.S. needs to build more demand. “We need another ethanol-type explosion on the demand side. That’s not in the foreseeable future,” says Richard Brock, president, Brock and Associates. “I think there are two key fundamentals. One is a positive outcome on negotiations with China. We’re positive on that because it’s our opinion that they need us more than we need them.” The second key fundamental is 2019 planting intentions. “Right now, estimates are all over the board. Based on seed sales, most people are anticipating a sharp increase in planting corn acres,” says Brock. “We (Brock and Associates) are more friendly to the soybean complex and less friendly toward corn at these price levels.”
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