Next year's crop, however, must be good because the country is building a larger demand base, Roach said. Some areas of the country are going to start out dry next year. We need to have a good rain. If farmers need to sell grain this fall because they have little storage or need the cash flow, the marketing guru recommended that they set up a grain contract now for delivery in three weeks. U.S. and world soybean productions are at their highest levels at 2.9 billion and about 163 billion bushels, respectively, he said.
Domestic demand is at a record level, and export demand also is strong.
But the crop is uncertain, and weather could change the bear market into a bull one, Roach cautioned. Market signals indicate that farmers should sell soybeans this fall, and the Brazilian market bears careful scrutiny. If you know you need to sell X amount of beans, I'd do it now. You have a better market now than what you're liable to get then. The outlook for the cattle market looks positive in light of more cattle being sold at higher prices than ever before, Roach said.