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Trade, weather pushing grain prices upwards

The soybean complex ended the day (Tuesday, July 31) up 21 1/2 cents to 28 3/4.

United States grain prices plummeted ahead of the global trade war. The markets have slowly rebounded since, with the soybean complex on Tuesday welcoming significant gains. A market analyst talks about factor influencing this week’s markets, as well as opportunities to make sales.

AUDIO: Jim McCormick, Allendale Inc.

November soybeans closed the day, on Tuesday, up 28 cents. Allendale senior adviser Jim McCormick says two factors helped the soybean market catch a bid, with the first being weather.

“Overnight, the maps look warmer and drier for the next week to two weeks. We’re getting into that critical pod setting phase for beans, so that gave us a little push up. But, the big headline story is it looks like China and the United States are trying to get back to the negotiating table. Next week, the next round of tariffs are suppose to be taken into effect from the U.S., and the Chinese have threatened to come back and retaliate. It looks like both countries are trying to head that off and maybe try to get a compromise,” McCormick said.

McCormick says sales opportunities should pop-up within the next couple weeks. He advises growers not to shy away from marketing when profitable.

“You’re looking at November beans over nine-dollars today. If you have a good crop in your field and feel comfortable with it, you’re looking at some pretty good dollars per acre compared to where we were just a few weeks back. Corn is the same thing. If you get up near four-dollar corn, and you’re one of these producers that have a very good crop, (then) you’re looking at some pretty good revenue. That’s maybe an opportunity to go ahead and make some cash sales into the fall, so you can have income. You can always re-own on the board, if you’d like,” McCormick said.