On the Grains
One day doesn’t make a market. If I’ve heard it once, I’ve heard it 1,000 times. Yet Friday’s USDA report may have made the market for 2025. Last night, while having dinner with many producers from around the country, the topic of “acres mix” was running rampant at all tables. The cut in carryout was justified and welcomed, we now have the bulk of the producers hoping beans rally so that the corn acreage stays somewhat in check. Yet all producers admitted that beans just don’t work at these prices and will more than likely push the corn. If you are switching acres this spring, I would look at some Put options, and we surely could see 95 million acres. Whether that is in the March planting intentions report or not till the actual June acres, I don’t know, but I would be defensive in nature. It will be interesting to note the attitude of the market at Commodity Classic after we have established the insurance prices.