John Roach Discusses Commodities

Question: where are hog prices going? 0.47

Answer: John believes it goes higher the only problem is the meal prices and corn prices have gone higher in chine, which is affecting all the markets.

Question: What are John's thoughts on corn basis in both new and old crop:1.18

Answer: He thinks corn bases are going to be variable. It depends on your particular market and situation. The cost involved has risen significantly, and the price will widen a bit due to these factors, but the demand is vital to have some narrowing.

Question: Are current drought conditions reflected in the markets with planting six weeks away? 2.40

Answer: He believes they are. You don't get happy about those types of conditions until you arrive there. He is more concerned with crops like the winter wheat crop hard red, and the markets are watching out for this at this time of the year and have them added in. there could be significant changes in weeks from now.

Question: Is there any truth to the rumors of some CRP acres being released for early planting? If so, how many acres, and will it likely go to soybeans? 3.48

Answer: John has no response to that due to it mainly deals with politics and can't predict what Washington will due. He believes that if they did open it up, we would probably not see many new acres come into production.

Question: When will wheat start to be priced competitively to corn and beans? 4.55

Answer: He does not think it will be if you look at the history. It will be something to watch and see regarding Ukraine and U.S winter wheat crops and Canada with its spring wheat crop. These 3 are the primary areas, and they are all at risk. They will continue to be strong in the markets compared to other crops.

Question: Is this a good time for farms to lock in their feed needs if they haven't already? 5.52

Answer: You should be buying feed whenever you see the price going lower. It would be best to accumulate feed, so you don't run out.

Question: Gas prices are rising significantly, so where do you think we go from here? 6.40

Answer: John is adamant that prices will continue to say high. How high we all will have to wait and see. Until there are some policy changes, they will not be softening. He believes it is a tactic used to reduce our energy consumption.

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