Evaluating Proft Margin for Corn, Beans

Matt Bennett, co-founder of AgMarket.net, shares some advice when it comes to the ag markets.

“I think the main thing I want to encourage growers to think about in a year like this is that clearly, we've seen a massive move as far as a percentage basis, higher, especially with, for instance, cash corn and so relatively speaking, of course, beans haven't performed near as well. But when we look at cash prices versus what we saw last fall, I've been highly encouraging growers to try to keep perspective and to understand, hey, you know the dollar higher cash price for corn, which is pretty common throughout the Corn Belt, versus, you know, the fall harvest low would that be in the case, you know, what kind of profit margin does that create? Now, the unfortunate reality is, I think the grower is probably down to 25-30 % maybe of ownership, because there's just been an absolute massive amount of corn sold after the first year, going into the January report, and then, of course, after the January report, 474, 8490, pushing $5 March corn bought a lot of bushels. And so, you know, I don't know that there's a lot of growers out there that are long on corn as far as having it on the farm, but I do think it's gonna be pretty decent property, at least for the time being.”

Matt Bennett, co-founder of AgMarket.net. With today's line on agriculture report. I'm Lorrie Boyer.