Producers have entered a time of the year when crop prices see very limited movement in the markets. During the past three weeks, only wheat has made any relatively notable price moves working up 32 cents from $4.75 to $5.08- although the bulk of that value occurring during one isolated period. The price of corn has moved only within a 7 cent range at an average price of $2.73. Soybean prices were adjusted 31 cents, though that is not considered remarkable from a soybean perspective.
Oklahoma State University Extension Grain Market Economist Dr. Kim Anderson spoke to the recent market activity in a recent interview with SUNUP Host Dave Deeken, that will air this weekend. According to him, the inactivity in the markets can be attributed to the fact that the industry has gained a firm handle on the size of the crops globally. However, he says the data does continue to be adjusted as further information comes in.
In order to burst this bubble and spark upward movement, Anderson says the more information that comes in that paints a better picture of the available global stocks of these crops will obviously help. In addition, increased export demand for corn and soybeans as well as lower worldwide production, will also help to buoy prices.
As that information comes in and markets take the interim to process it, Anderson advises producers to carefully watch for market signals prompted by Russian crop production as well as US and global production of corn and soybeans- both of which are expected to be very large.
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