The Fort Wayne Farm Show kicked off Tuesday at the Allen County War Memorial Coliseum.
“Usually, when we’re talking farm show here, we’re talking about crappy weather at least one of the days and making it difficult to get here, but no such luck this time around,” says Hoosier Ag Today Chief Meteorologist Ryan Martin giving his Fort Wayne weather outlook for the next couple of days. “So, I’m expecting it to be busy.”
Martin wears many hats. In addition to being our weather guy, he’s also a farmer origination specialist for Louis Dreyfus Company in Claypool.
LDC is in Expo 3 of the Coliseum and Martin says he’s been getting questions about the markets following last week’s USDA reports. The big question though- should you be taking your beans to Claypool right now?
“Price is pretty good, Eric. Honestly, 15 cents over the board right now still means we’re printing almost a $15.30 number in terms of cash. That’s a good number. You can make money at $15.30 beans. Inputs are high, I know, but you can make money at $15.30 beans.”
But Martin says the bigger question revolves around interest rates.
“Interest rates at this point are probably worth eight to nine cents a month. And when you look at the board structure right now, there is literally no carry from the March contract in beans all the way out through the July. So, the market is telling you through its carry, ‘Hey, there’s no need to hold.’ And when you put that together with the interest rates, it really kind of hammers the point home.”
Martin believes it all comes down to your appetite for risk.
“What kind of storage that you have, what you need to charge yourself for interest, what the bank is charging you for interest, and all of those happy little ingredients, but right now is not a bad time to move beans. Honestly, later may not be a bad time to move beans depending on your appetite for risk.”
Hear more with Martin below regarding his outlook on the markets in the full HAT interview. The Fort Wayne Farm Show runs until 8pm Wednesday night at the Coliseum.
