With corn prices uncertain, farmers should consider stashing their grain and biding their time.
USDA rattled the markets when it increased its planted acreage estimate for corn. According to its June 28 Acreage report, farmers have put 97.4 million acres of corn in the ground. Since then, corn prices have been on the downslide. Futures hovered around the $5 mark this week, and some analysts are saying they could dip even lower.
"It's going to take some weather challenges to move the markets here moving forward," says Iowa farmer and AgWeb margins expert Chris Barron.
With such a bleak market forecast, what can you do to get the best price for your crop? Barron says it will be important to watch the markets closely and be ready to take action.
Hear more from Chris Barron:
Watch the Markets
- Pay attention to crop condition. This will be especially important for soybeans, Barron says. "Keep an eye on weather hurdles during pollination and during the fill period."
- Pay attention to market psychology. "Know your cost of production, and if there are some opportunities you're willing to take advantage of, be able to step in there and do that," Barron says.
Ready the Bins
"This is going to be a year to use your grain bins," Barron says. "I would be out there getting the best grain bins ready to go, because I think there's going to be some basis opportunities, some carry opportunties. This is going to be a year to harvest it, fill everything up, and take advantage of the carry."