Corn and soybeans are currently trading even this morning. World trade watches, as no major events have happened in trade negotiations to make stability for supply and demand. Beyond that-the U.S. is having a great start to harvest with this dry stretch in the lower Corn Belt. This is another event that producer are likely going to cross off the list that could have been a catalyst for a market rally.
Producers that have been holding out to market the last of their old crop corn and make sales for fall delivery timeframes have run out of time. This week’s report gave us additional bearish news that will not be updated until November. Cash levels and basis levels have both dropped in the last couple months as we moved closer and closer to harvest. Look for basis levels across the country to widen as space becomes an issue with carryout from last year and the size of this year’s corn and bean crop. Producers should be actively locking in Basis levels for any grain they need to move.
Have a Great Weekend!