(Le Mars) — Farmers have witnessed a price rally with corn and soybeans in recent weeks, and Iowa State University Agriculture Economist Dr. Chad Hart believes farmers should take advantage of the opportunity. Hart says the price rally is due to a combination of hot and dry weather concerns in the United States, a poor South American crop, and a weaker U-S dollar allowing for foreign nations to purchase commodities at a cheaper price.
Hart says July 4th is typically a time when farmers can see what the markets will do for the remaining crop season. However, he believes that time frame may have been pushed up a little. He says this year’s price trends resemble last year at this time.
The Iowa State University Agriculture Economist says farmers may want to look at selling some of their stored grain during this rally. He also says farmers may want to look at ways at protecting themselves from any price decline as it relates to their new crop that is still in the fields.
Hart says soybeans have been driving the markets with corn and other commodities following.
As to if this price rally will turn into a long-term increase, Hart says that depends on Mother Nature and how quickly the El Nino weather pattern turns into a La Nina weather pattern.