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Understand Grain Market Trends

Posted: September 12, 2014

As the 2014 fall crop harvest begins in earnest coming in the DelMarVa we are hearing reports of average to above average yields and the resulting softening of our local basis. Extension Marketing Specialist John Berry points out demand remains strong-ish and is considered stable.

Supply could be the price issue for this marketing season. Off-shore production is also respectable in most countries with the former Soviet Union, and Mid East areas spinning off some global uncertainty now and then. The dollar is gaining strength partially because of this uncertainty, and when the dollar is strong grain prices can be expected to struggle.

Corn carry remains large and in previous articles Berry has reviewed appropriate pricing strategies under these conditions. However, soybean carry at this time is not only “small” it is actually negative – depending on which delivery months you use. A small carry indicates that selling the crop off the combine or putting in storage unpriced are the marketing methods to consider using.

 

(Contributed by Leon J. Ressler, District 17 Director as part of his Now Is The Time Column for September 13, 2014.)