As the harvest moves into high gear, pressure on grain prices mounts. Futures prices have continued to fall, and cash prices in Indiana are approaching $3.00 a bushel for corn. Yet in a survey by Hoosier Ag Today 2/3rds of those responding said they intended to sell at least part of their crop at harvest.
Last week’s Pioneer Poll asked if producers planned to see at least some of their crop at harvest. Of those who responded, 66% indicated they will be selling at harvest. Several market analysts contacted by Hoosier Ag Today indicated that selling at harvest may be a good strategy since prices may trend lower after harvest. Another factor behind the move to sell could be the need to generate cash to pay for operating loans taken out this spring to plant the crop.
At the end of the week, the USDA will release a Quarterly Grain Stocks report. “Most are expecting to see tightening soybean numbers and ample supply of corn and wheat,” said Bill Gentry, with Risk Management Commodities in Lafayette. Waterstreet Solutions says world demand is getting competitive, “US corn is still the cheapest source for corn in the world, but Argentine and Black Sea supplies are edging in on deferred business.” November beans held technically at the 9.44 area on Monday. “A Close below there would project price toward 9.00-9.20. Seasonal price pressure continues for the next couple weeks,” according to Waterstreet Solutions.
The HAT weekly poll is sponsored by DuPont Pioneer.