Drought continues to grasp the western half of the country. While farmers in southeast North Dakota saw some rain this week, farmers in the west are considering parking planters for now to wait on rain.
“Unfortunately, they’re living weather forecasts by weather forecast,” says Tommy Grisafi of Advance Trading. “That’s really hard to do. You need moisture to grow grain. I know there’s an old saying ‘plant the dust in the pencil bust,’ but if that never germinates, that’s not true. So, we need rain up there. For some it’s really bad. And it’s going to take it above average moisture just to get things kicked in.”
Grisafi says some farmers are considering switching from wheat to other small grains, while others may hold off to see if it rains. And if it does, he thinks you could see more North Dakota farmers switch to soybeans.
“The next four to five weeks will be really critical,” adds Grisafi. “In America, we need every single acre planted; we need every bushel. The markets are waiting for it. And if we don’t receive these acres, and if acreage actually starts going backwards and production goes backwards, you know what that means to price.”
For farmers who possibly already forward contracted some grain, Grisafi says those farmers may still have some various marketing options.
“If they did forward contract already, it’d be prudent to get some calls on the books to get some ownership back,” he says. “If you’re really scared, you can already call and buy out of contracts. You’re going to have to write a check because the market is probably a little higher.”
Grisafi says considering spring wheat prices today, some farmers may have forwarded contracted grain 40 cents higher than today’s prices.
“The market did have a bad couple of weeks and sold off,” explains Grisafi. “So, spring wheat has been a lagger, in my opinion, it feels very affordable for something we’re having a hard time planting.”
Related Stories:
Parking Planters and Culling Cows: Early, Harsh Realities of North Dakota’s Growing Drought
North Dakota Farmers Need 200% of Normal Spring Rainfall to Undo Drought
