Conflicting government information affected the markets late last month. First, the U.S. Treasury Secretary said he was hoping for a weaker dollar. Then 24 hours later, the President said he favored a stronger dollar. Exports are sensitive to exchange rates, so these conflicting statements caused some market volatility.
Constantly changing weather forecasts in South America also continue to help move markets in both directions. On Jan. 26, corn traded at its highest level since late summer and after a few wild weeks beans also increased to levels unseen in the last month. With these price increases, several grain buyers throughout the Midwest reported the most farmer selling they’ve seen in months.
Beans — 2018 sales
With the strong rally, I hedged some 2018 beans. On 1/22/18 I sold Aug futures at $10.06 and on 1/25/18 I sold more Aug futures at $10.20. Each of these sales represent 25% of my 2018 crop, so that makes me about 50% sold for 2018 with an average price of $10.13.