In the middle of harvest, some farmers are running out of places to store their grain. With a record crop, some producers aren’t willing to pay for a lot of commercial storage if they don’t have the room on the farm.
Matt Bennett of Bennett Consulting told AgDay host Clinton Griffiths after seeing a 60 cent rally in soybeans and a rally off 25 cent lows for corn, a lot of people are wondering when they can profit.
For those that still have a lot of corn in the bin, Bennett reminds farmers there’s still carry in the market.
“If this market has rallied enough for you, let’s look and maybe go ahead and sell July corn,” said Bennett. “Whenever the basis rallies from here on forward, which we think that it will at times, they’ll put that money in their pocket.”
Some farmers that bought May or July calls or call spreads didn’t know they would have an opportunity in a few short weeks to profit when there’s a rally
“If my initial goal was to make another 20 or 30 cents, on what I was going to make, maybe I need to go ahead and take that now instead of waiting on more,” said Bennett.
Watch Bennett’s thoughts on farm management with operating loans and preparing for 2017 on AgDay above.