A marketing advisor says the corn market could use more demand to bring prices up.
John Heinberg with Total Farm Marketing says corn exports are strong but, “The demand is great at this time frame, but the supply is also a little bit on the greater side.”
And with that huge supply, Heinberg says corn needs more demand to move prices higher. “Unless we find maybe a different form of demand over what we’re seeing now, you know, somebody stepped into the export market that we’re not counting on, it’s just going to be a wet blanket over top of this market here. I’ve been telling producers just focus on your cash market more. That will give you the direction maybe more than the futures market does.”
Heinberg says the latest USDA supply and demand report was a disappointment. “You know, everybody was waiting for ten more cents off that report and get some sales in, and sell some $4.00, $4.25 corn and get some money flow, and it obviously didn’t give us that.”
Heinberg says USDA’s supply and demand numbers showed where yields changed by region. “Iowa and Illinois were dealing with those disease issues. Their yields actually came in worse than last year, slightly, but worse than last year, but we had a year where the corn crop or corn production area moved north and west, and those areas all hit big yields on top of big acres.”
Now, he says many farmers need to sell some corn as they can’t wait for higher prices. “It’s been a little bit of an adjustment period, but now I think we’re at the stage guys are going to be forced to start pulling some triggers. They’ve just got to get some money flowing.”
Heinberg says the large corn supply is likely to keep a limit on the corn prices.
Heinberg spoke to Brownfield Tuesday during the University of Wisconsin Ag Outlook Forum in Madison.
