MATT RETTMEN, MERCHANDISING MANAGER
Grain markets are always full of surprises, and this year is no different. Between shifting supply, tariff discussions, and fluctuating demand, it’s been a rollercoaster few months for corn and soybean prices.
What’s Moving the Market?
The January 10 USDA Grain Stocks report showed lower-than-expected supply, causing a jump in futures prices. That led to a rush of farmer selling, which quickly pressured the basis lower.
Since then, outside factors—like ongoing tariff discussions and money moving in and out of investment funds—have softened futures prices. However, with producer sales slowing back to pre-report levels, we’ve seen basis levels begin to recover.
Where’s the Demand?
Export demand remains weak, meaning most local corn and soybeans are being used for feed, ethanol, and processing. South America’s growing influence in global markets has also disrupted the usual seasonal price rallies and grain export movement.
Looking Ahead
Will we see a typical spring rally? Time will tell. But given today’s market uncertainty, having working offers in place can help you take advantage of unexpected price spikes.
If you have questions, want to make a sale, or need to purchase grain for your HCP obligations, the UFC Grain Department is here to help.
Give us a call at 507.232.1049.