USDA’s August Crop Production report left farmers and ranchers puzzled, as USDA barely trimmed corn yields and raised soybean production. Whether USDA is right or wrong with projected yields and production, analysts on U.S. Farm Report say that’s not the argument that needs to take place.
The question farmers should be asking is, “Where do I go from here?”
“Don’t go into this fall using hope as a marketing strategy,” said Angie Setzer of Citizens Grain LLC. “Sit down make a plan, adjust to what's going on in the market structure, know what you're up for,” she said.
Setzer suggested that farmers shouldn’t focus as much on basis at this point.
“If you don't have anything sold or you’re cash trader, the cash price is what matters,” she said.
Mike North of Commodity Risk Management said despite lower commodity prices today, any price pops should result in action.
“The old adage of sell rallies still holds true,” said North. “The bottom line in our market is we can't look away from opportunities in our market. If you see a rising price, be ready to take advantage of it, and that doesn't matter what market you're talking about.”
Dan Hueber of The Hueber Report said even in a down market, it’s not time to get distressed.
“There are a lot of challenges that are out there, but when you look at the overall commodity sector, we've coming through what I believe is a major low; the next few years are going to be better opportunities ahead,” said Hueber. “So, it's time to make those plans and execute when the time when the prices present it to you.”