After a short rally in mid-December, January 2019 soybean prices fell more than 50 cents in only two weeks. It’s those intermittent rallies that one Purdue University economist wants farmers to watch. The uncertainty surrounding prices could also spark some last-minute changes in crop rotations next year, and that’s why Jim Mintert said 2019 may be the year that flexibility in cropping decisions pays off.
“I think one is to maintain some flexibility with respect to your decisions for 2019, specifically if you think about your cropping decisions for corn and soybean acreage,” said Jim Mintert, Purdue University economist. “That's going to play out over the next few months, and I think maintaining some flexibility is going to be important."
Mintert said it’s important to pay attention to rallies, something he doesn’t want producers to lose sight of for both the 2018 and 2019 crops.
“There are some opportunities out there to lock in some positive returns, and you might not want to let those opportunities get away from you,” he said.