The year began with many farmers waiting for the Jan. 10 USDA Supply and Demand Report. Also, some independent analysts have raised their estimates of the size of the 2013 U.S. corn and soybean crops.
"The short-term fundamentals for corn are very poor," concedes Karl Setzer, a market analyst with MaxYield Cooperative.
But, Setzer says farmers need to stay calm and to stick to long-term marketing plans.
"Do not panic," he says. "Remember, you'll never go broke locking in a profit."
Still, Setzer says there are many moving parts in the grain complex.
Informa Economics issued an estimate recently that included an increase of 2013 corn production by 173 million bushels and soybean production by 71 million bu.
Also, the market is dealing with news China has turned away some U.S. shipments of corn and dried distillers grain (DDGs). The corn was turned away because it was reported to contain a genetically modified strain that is not approved by Beijing.
While some conspiracy theorists argue the move by China may be primarily due to a larger Chinese corn crop and less need for grain, the bottom line is China appears to have enough corn, and that could have a ripple effect on the rest of the markets.
