‘Look out below!’ could have been the title of an address given by noted grain markets analyst, Cal Whewell at this week’s GFO March Classic event.
Whewell, Risk Management Consultant with FC Stone in Bowling Green, OH, told Ontario grain growers that next Monday’s (March 31) USDA Stocks report will be a watershed event. “If the report shows numbers greater than 94 million acres of intended corn planting in the US and 81.3 of soybeans, we will see a dramatic sell-off in futures,” he said.
And on the topic of wheat price forecasts, Whewell says the conflict going on in Ukraine is built into the market. “Russia is staying put in the Crimea and life will go in in Ukraine as a grain exporter.”
Ukraine is the world’s third largest corn exporter.
Generally, Whewell warned grain growers that this February/March spike in grain markets has run its course and that a downhill slide is imminent.