With harvest in the United States underway and off to a very slow start due to rain, there is a lot of discussion regarding the grain and oilseed market outlook. There has been many factors to consider:
- Struggling hog and beef sectors could hurt feed grain demand
- In the US, initial corn yields look very good
- Ethanol industry has recovered somewhat and demand for feed grains should increase with rising oil prices.
- Some forecast are showing the carry out for soy could be virtually at zero by next summer if demand stays stable.
- There has been some reports of soybean pod shattering in some regions.
I asked Moe Agostino, Managing Commodity Strategist at Farms.com to break down some of these factors and provide some price target forecasts for me.
Corn and Soybean Market Outlook – Moe Agostino, Farms.com – Oct 20, 2009
If you agree or disagree with Moe please leave you thoughts in the comment section. Thanks.