Quick Ship Soybeans and Storing Corn

The rains falling across the Midwest are delaying harvest for the moment, but they may also bring with them a sales opportunity for farmers. That's because the amount of soybeans left in the nation is pretty small, and processors are in need. University of Illinois agricultural economist Darrel Good says, if farmers can get in and harvest, they might find some pretty good basis levels.

We are coming off a period in central Illinois when spot soybean prices were running well above November futures. Twenty to thirty cents above, but it has begun to erode. However, we are still looking at prices pretty close to option value. It says to me with big yields and that kind of price, well over $9.00, revenue looks pretty good by selling some soybeans at least, if not a majority of the soybeans right out of the field. -Darrel Good

The sooner the better and the higher the quick ship premium, although those are likely to disappear quickly thinks Darrel Good.

Store #corn, but you’ll need to hang on for a while says Darrel Good.https://t.co/gydUMuQa17 @uie_ag pic.twitter.com/4CeVV9RrGX

— Todd E. Gleason (@commodityweek) September 15, 2016

Marketing Advice from Darrel Good

Now that USDA has released its first official look at the balance sheet for new crop corn and soybeans, farmers are under the gun to make some marketing decisions. The easy ones are related to what’s left to sell from last year.

This week USDA estimated the average cash price farmers will receive for the coming corn crop will be fifteen cents less than last year at $3.50 a bushel. It makes the decision to sell what’s left from last year’s crop pretty easy thinks University of Illinois Ag Economist Darrel Good.

Quote Summary - I think you just give it up, meter it out, and let it go.

Pretty much the same advice goes for old crop soybean sales.

Quote Summary - There is no opportunity at this juncture, beyond a summer weather problem, for prices to recover.

Sell old crop corn and soybeans at your discretion, but probably sooner rather than later. However, Darrel Good is much more cautious as it relates to new crop sales.

Quote Summary - Prices are low enough, certainly below the crop insurance price, and I’d bide my time on new crop corn.

He’d do pretty much the same for soybeans.

Quote Summary - Probably in the same category. You are seeing prices right down at the $9.00 level for harvest delivery, about what USDA expects for the year ahead. There is probably no urgency to get aggressive at these levels.

Again, that’s sell the old crop and stand to the sidelines on the new crop. You may read Darrel Good’s thoughts on the commodity markets each Monday afternoon on the Farm Doc Daily website.