Corn and soybean prices are inverted with no carry in the market, offering farmers an incentive to hold grain. Commodity Risk Management Group market analyst Britt O’Connell thinks farmers should be patient with old crop. “If there are issues in South America and $12 doesn’t save the soybean market, maybe that’s when we look at call strategies. Right now, farmers may want to be patient.” Farmers may also start to think about the new crop. “The one thing we can’t forget is the 2021 crop. That’s what we’ve been paying attention to now that we’ve gotten to profitable places for producers. Remember, markets don’t always have to move up,” says O’Connell. “At some point, they’ll move down. We still have ample corn supplies and a struggling ethanol industry. Make sure farmers continue to engage in the markets. Early sales may have been made, but farmers have to average up.”
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