#556 - “The Magic Corn Price” - Weekly Market Outlook: Jan. 22-26th

The Ag View Pitch

Clark Neighbors with BIS Commodities in Cedar Rapids Iowa visits with Chris in this week’s episode. Chris starts with the key question: What is the “magic corn price” that farmers would be willing to let go of the 2023 crop? Farmers seem to have a minimum target of $5 per bushel on farm price for the balance of inventory. However, is that realistic and how do we navigate basis to get to that net value? Clark provides some perspective on what some of the trigger points might be for producers to begin to move the balance of grain inventory. Several of those factors include, cash flow needs, the Calendar, basis opportunities, and the cost of storage versus the carry in the market. They continue the conversation with the following topics of discussion. Interest rates Energy prices Commitment of trader's report Geopolitical situations Demand They wrap up the conversation, discussing some potential targets and the importance of paying attention for opportunities on the 2024 crop.