Have you called your grain buyers lately? If you haven’t, now is the time. Basis levels are high in many parts of farm country. (Check AgWeb’s Cash Grain Bids now!)
For both corn and soybeans, basis is it reflecting a tight supply, strong demand and an unwillingness for farmers to sell, says Matt Bennett, co-founder of AgMarket.Net.
“At one of our larger processors, we were 75 over and some were paying 90 over,” he says. “So we were approaching $9 cash corn last week for a day. They moved back to 60 over for this week.”
Listen to Bennett discuss the current grain market situation with AgriTalk’s Chip Flory:
Bennett says this is a sign processors are having a hard time sourcing corn.
“Is there a lot of corn out there in the countryside? The answer is no,” Bennett says.
His advice: If you have grain to sell and see attractive bids, act now.
“I think in the next two to three weeks this really exciting basis is probably going to run its course,” he says.
“Once you get out past July 4, we kind of know what the crop is going to be and harvest will be starting in four to six weeks from then. My personal experience has been, if you hold corn too long into the summer you can get bit pretty hard.”
Bennett also encourages farmers to keep in mind what levels corn and soybean prices are at, from a historical perspective.
See your local market prices with AgWeb’s Cash Grain Bids
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