Monday, July 15, 2024
HomeJesse's CommentaryWith $4 Corn, What Will the Mood Be Like at Commodity Classic...

With $4 Corn, What Will the Mood Be Like at Commodity Classic This Week?

(NASHVILLE, TN) — As I sip on my morning coffee and stare at a quote screen with March corn at $3.96, I have to wonder what the mood will be like this week as farmer descend upon Houston, TX for Commodity Classic.

Seeing that three handle on spot corn futures is not something anyone wanted to see. Especially, folks who are still hanging on to any 2023 bushels that have not been priced yet. Considering we had high input costs and more, do farmers simply hang on to any remaining corn as they hope for a rally? What about any marketing for the yet to be planted 2024 crop?

As we know, farmers and ranchers are eternal optimists as is this farm broadcaster. So maybe these funds who are record short in grains will find a reason to get out of their positions and we can get back to a price that is easier to stomach. Or maybe we are forced to make some tough calls when putting together our input plan for 2024 to keep our cost of production down? I’m not sure, that’s not my area of expertise.

But I wonder, will the mood still be upbeat this week in Houston or will there be a sense of people being aloof? Will there be a lot of tire kicking and looking instead of seriously considering new equipment? What will the panels and experts have to say about the markets and other factors in agriculture?

We know that cycles come and go in agriculture and it appears that we are entering a down cycle right now. I’ll be curious to see this week just how much it impacts the mood of folks in attendance at Commodity Classic.

***Make sure to swing by and see me broadcasting AOA LIVE on Thursday morning from 9a-10a CST. We will be in the AGI booth, #3403, on the first floor of the trade show. I will also be broadcasting my Market Talk program LIVE on Thursday and Friday with the National Corn Growers Association. That is booth #7405 on the third floor from 2p-3p CST. Hopefully I’ll see you in Houston!

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