The current down swing in the market has put a damper on farmer’s spirits lately. Are you currently looking to get more out of the market? Cash + contracts have done well for corn pricing. Farmers are getting anywhere from a $0.12 premium on a cash contract for a $4.40 new crop offer, to $0.20 premium for a $4.10 new crop offer. These need to be in 5,000-bushel increments. New crop prices are currently lingering above $3.50 which is a good place to start your pricing for the year.
The soybean market has been bleak especially when it comes to basis. Everybody needs to be proactive on getting some priced before things get worse. Cash + contracts on the compass programs is not very promising below $0.30 premium. However, getting some bushels on the books instead of selling over the scale is a good idea. It is never too late to start looking towards 2019 harvest. New crop bean prices have been shaky, especially the last few trading days around $8.50 with a -$0.90 basis. HTA contracts can possibly help make up the difference by locking in the futures and hoping the basis improves by the time harvest comes around.
If you have questions or want to get some contracts in place feel free to reach out to Mike Steingraber and he would be happy to go over options with you.
Written by Mike Steingraber, Grain Originator