2014 Grain Outlook

Описание: Click to get your FREE 2014 Grain Outlook: http://rjofutures.rjobrien.com/tradin...

Despite a record U.S. corn crop and near-record soybean crop in 2013, the market's attention has shifted to demand considerations in the beginning of 2014. Forecasts of U.S. soybean stocks currently sit near all-time low levels, while U.S. corn ending stocks projections are well below levels anticipated last fall. Although prospects are strong for another year of impressive crops coming this summer, barring a major weather problem, there could still be "old crop" fireworks to come -- particularly in soybeans.

Price action over the coming months should be heavily influenced by any changes in demand prospects and, given the structures of the individual balance sheets, the markets appear to be in an interesting position regarding potentially equal upside and downside price risk depending on these developments.

From a long-term point of view, a generally negative price outlook is foreseen for new crop contracts as "normal" weather this summer should leave the 2014/15 balance sheets in comfortable standing.