In general, the markets tend to trade sideways in February. And, with no big surprises in the February USDA report, everyone is looking to the March 31 report for market direction, which will estimate corn versus bean acres. Summer weather will then be the big market driver after March. For a $4.50+ corn rally, there will need to be big surprises in the March report. To reach $5, weather-related conditions are likely necessary this summer. On the bright side, it will be hard for the market to trade near $3, unless we get a bumper crop like 2014 again.
This month I worked with a client who was interested in putting up more storage. Currently, they were able to store 50% of their crop on the farm and they wanted to store 100%. To get financing, they asked me to help them show how storage was a good investment to their banker.