Grain Marketing Flexibilit Key to Corn Marketing

The 30th annual Commodity Classic took place in San Antonio, Texas, recently. There were just over 12,000 people that attended. Of those was Matt Bennett, CEO and co-founder of agmarket.net, who talked a lot about what's going on in the corn markets.

“We got a lot of corn to chew through on old crop.That's that's maybe on kind of the bearish side. I mean, there's no doubt there's a lot of corn. On the bullish side, you've got record world demand. You got record us demand. Corn is in high demand, and that's all there is to it. So if we look at, for instance, hey, we've got 16.4 7 billion bushels of demand. There's only one year in the history of the US we produce more corn than that, and so as long as we're producing, we're going to be okay. Markets aren't going to do anything last year. Hopefully it's not a repeat. But if we produce, that's what's going to happen. It's going to be a flat, dead market. If you get into a production issue, the volatility that could come into this market could be massive.”

When it comes to marketing commodities such as corn, Bennett suggests that producers be as flexible as possible.

“What would happen if we do get into a production issue, and I'm trying to tell people, let's stay real flexible this year. I don't want to lock in a loss 10 months ahead of harvest. You know, if I haven't given this market a chance to at least do something.”

Bennett points out that just because there might be a rally on the Chicago Board of Trade in the corn markets does not mean that it translates to a rally in cash price.