(Le Mars) — Since harvest is nearing completion with record yields being predicted for both corn and soybeans, the question becomes, will commodity grain prices continue to slide due to the large surplus. Iowa State University Extension Grain Marketing Specialist Chad Hart says although the grain marketing outlook does appear to be dismal, he says there could be some opportunities for a small price rally.
Hart says based on past trends, he believes a price rally could occur during the spring of 2017.
Hart says the recent political atmosphere with Donald Trump being elected as the next president may also trigger some grain buying action from our trading partners.
The grain marketing economist says many countries may worry if their trade agreement with the U-S may be subject to re-negotiation.
The Iowa State agricultural economist has been visiting several sites within the state offering his perspective on the grain marketing outlook. Hart says there is another possible factor for a price rally, and that is the long-term weather forecast calling for drier conditions in the nation’s southeastern states.
Hart suggests farmers and grain merchandisers to closely watch the grain markets, and to act quickly if a rally should occur. He says if they wait, they may lose the opportunity.
