Markets Firmer Tuesday

Corn managed to firm up again Tuesday, with gains of around 2 cents. December 16 closed at $3.90 1/4, which was the highest close since the middle of December. Just since early January the contract has rallied about 20 cents. While that is encouraging, we have a long way to go before a profit can be locked in. Looking at Farm Business Management budgets, many farmers need about $4 a bushel to break even with good yields. With the basis that would mean a futures price of about $4.50 a bushel.

Beans had a nice day Tuesday with gains of 5-7 cents. Beans closed just a penny off the highs of the day. Beans, too, closed at their highest level since the middle of December. It was quite impressive given the Dow was down almost 300 points Tuesday after a drop of more than 600 points Monday. Like corn, beans have a long way to rally before farmers can lock in a profitable price, but at least we seem to be moving in the right direction.