During a live taping of U.S. Farm Report at the 2019 Top Producer Summit in Chicago, analysts shared the opportunities and threats they think commodity markets will face this year.
“With the government being closed, missing last week’s crop report was a bummer to say the least,” says Pete Meyer of S&P Global Platts. “I really think the 2018 yield is going to come down and would have given us an opportunity to take advantage of pricing.”
He says the longer the market waits for the data, the more focus will be placed on demand issues.
Meyer is optimistic about the corn market. “I like the corn market a lot more than I like the bean market,” he says. “The global balance sheet in the market is pretty tight.”
Naomi Blohm of Stewart Peterson says complacent marketing is one the biggest threats facing farmers this year.
“Be very thoughtful about cash sales,” she warns. “Have them mapped out and take action.”
The market she’s optimistic about is winter wheat.
“I’m really excited for Kansas wheat,” she says, adding that many farmers had a hard time getting the crop in and some left it out for prevented plant.
The ending stocks had already been coming down, and reduced acres could push prices higher.
The financial health of farmers heading into 2019 is what Matt Bennet is most concerned about. He says many farmers need 2019 to be a good year and there’s a chance it won’t be.
You can watch the live taping of U.S. Farm Report this weekend.