There’s still a lot of discussion happening with farmers looking to get rid of old crop corn. As harvest comes closer, producers will have to make a decision: should they hold it or should the sell it when it comes off the combine?
The Federal Reserve has increased interest rates multiple times since last June 2017, which is impacting the decision.
“It’s not free to store even if you own the bin—there’s a cost of holding that grain,” said Tommy Grisafi, risk management broker with Advanced Trading, Inc. “I think the American farmer has a little bit more hedge this year than in previous years.”
On the soybean side, Brian Splitt, market analyst with Allendale, Inc., there’s been “an awful lot of activity.”
“At some point, the actual producer ownership of soybeans is going to be nonexistent,” he said.
Watch their full, in-depth conversation on marketing grains on Markets Now on U.S. Farm Report above.