What Corn Yield Potential Means For Feeders
While grain prices are affordable, livestock producers should lock in feed needs. According to Bob Utterback of Utterback Marketing, the September supply and demand report from USDA will confirm lower yields than originally anticipated and prices will start to bounce back.
“It's time now that start your feed buying,” he says. “Get your [corn] locked up on a wide basis and buy the front end. You don't want to buy that deferred by the carry, you want to buy the front end Dec corn.”
Utterback prefers to buy feed grains in the money call, so if he’s “early” and prices move lower, he can “roll the call down.”
“Essentially, start accumulating some feed needs,” Utterback says. “It’s time now to get in the market and get locked up in reference to corn.”
Soybeans are not as clear cut.
“If USDA is right at 49 bu. plus, beans are going to have a hard time,” he says.
