The January 2015 USDA report could be an important one that provides more direction on the corn prices in 2015.
“There are more analysts starting to say that grain prices have settled too low and farmers won’t grow and sell corn at these low prices.’” said Lahti, "our firm has recommended that farmers do not sell their grain at the low harvest prices."
As we end 2014 and begin planning for 2015 crops, farmers have some tough decisions to make. When do I market the 2014 corn crop and how many acres do I plant in 2015. Another factor to watch influencing the 2015 corn price is the plunging price for oil, which will impact the profitability of ethanol production and corn demand.
“There is a lot of corn and soybean inventory out there. Marketing and working to have a low cost of production should be the focus of farmers in 2015,” says Lahti. “protect yourself and aim to take a profit when selling in 2015. Remember the marketplace does not care if farmers make money or not so set your marketing objectives based on your farming operations own financial situation."
The agri commodity analysts are also watching Brazilian soybean production this year as increased supplies will weigh heavily on the market forcing prices lower. Here is an update on the South American soybean situation.
http://www.farms.com/ag-industry-news/surprising-jump-in-soybean-production-in-brazil-projected-279.aspx
www.riskmanagement.farms.com
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