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Time seems right for making some corn and soybean sales - AG Week

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With planting still some time away, Randy Martinson said it's time to sell maybe 15 to 20% of corn and soybeans.

"In both corn and beans, I want to be a little more aggressive as we start going into the spring," he said. "I think once we get the acres solidified for 2022, we could see this market coming under pressure. Right now, we've got some good markets, might as well take advantage of them."

Martinson, of Martinson Ag Risk Management, made those comments on the Agweek Market Wrap, in light of what AgweekTV's Michelle Rook called "an up-week in all the grains."

Soybeans were up, with South American weather again the dominant driver in the market. Rains in Argentina pulled meal down, Martinson said, but there was more talk of demand for soybean oil. Plus, Brazil continues to be dry and could see lowered yield.

"They're looking at it being a smaller crop than last year," he said.

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Add to that rumors that China was looking to buy U.S. soybeans; Martinson said one sale was announced but more announcements could be coming.

Corn also traded South American weather but demand also was a factor, Rook said. Martinson confirmed that concerns that damage to Argentina's corn could be irreversible may bring more business to the U.S.

On the heels of a couple bad weeks, wheat was up in Chicago, Kansas City and Minneapolis. Some, Rook said, was a technical bounce, but some of the strength came from Russia-Ukraine tensions.

Martinson said concerns about escalation between the two countries definitely played into the strength in the U.S. market. Further escalation could shut down trade out of the Black Sea, which could push more business to the U.S. Also, sales to Taiwan and Japan helped push things along.

Martinson and Rook said wheat was due to see a correction in the market.

The Cattle on Feed report released Friday from the U.S. Department of Agriculture was pretty bearish, Martinson said. Rook said it had been a sloppy week of trading leading up to the reports, too.

Martinson said cash trading has been steady, with concerns hanging over the market about the stock market, slaughter speeds and more.

The hogs, meanwhile, had a "stellar week," Rook said. Part of that was strong demand for cutouts, she said.

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"It's more tied to the fact that we have tight supplies and demand is expected to continue to be strong," Martinson said.

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Time seems right for making some corn and soybean sales - AG Week
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