Allan Bentley, Sales Representative, Genesus Inc.
I have been reading articles about corn markets and the question that everyone wants an answer to, is:“ Will we see higher prices?”
My answer is NO. The amount of corn in the country is staggering, never have I seen in my years of travels, so many piles outside on the ground. There is no reason to lock in any corn prices for the next 6 months as it is unlikely to increase. Next summer’s weather might have some impact on prices but until mid-summer of 2018,
I think we have seen corn hit the high on the market. Soybean meal is a little different story. We are off about $20/ton on the futures and if we can get some $300/ ton soybean meal bought, I see no reason not to lock it in. December is usually the month that cash markets and futures never are the high for hogs. As the first of the year rolls around start looking at December 2018 futures. If they reach $66 to $68, I would be a very aggressive seller.
Currently, weaner pigs are $60 US on the cash market and they are hard to find at that level. This is showing us a lot of optimism for the summer months of 2018. Again, December is just historically not a good time to hedge hogs, so I would throw the dice and let it ride. After the first of the year prices should pick up and that will be the time to start thinking about selling. If the summer futures get close to $90 then it is time to take another look.
This post was written by Genesus