In the protein business, feed ingredients are over 50% of our cost. No two years in farming are alike or free of drama. Much can change between now and the harvest, The key is bringing order to chaos and having a long-term strategy.

While U.S. markets last year benefited from a drought in Brazil that affected the country’s corn and soybean production, this year’s projections are for record crops that will affect 2018 markets. Current projections call for a continued excess supply of both corn and soybeans.

The question is: “Who is going to flinch first?” Dan Basse, president of AgResource Co., said that’s what he and his team ponder when looking at this “plateau” phase in the agriculture markets.

The market is truly global in nature. One hiccup in any major crop producing region of the world can result in a significant market shift.

The fundamentals of the commodity market have changed dramatically in one year.