Financial markets are being fueled by the General Election, while grain markets look toward other present and future events. Jim McCormick, branch manager of Ag Market, offers additional insight below.
Favorable weather conditions this week push fall harvest toward the finish line. McCormick reports, “Basis prices are starting to firm up,” which may present local producers an opportunity to make cash sales.
“End users have not been able to get their hands on as much corn or beans as they’d like, so the basis is firming. We’re encouraging producers to keep an eye on that,” McCormick says. “If we get a good basis push, don’t be afraid to move grain. The bean market, for the most part, is still penalizing you to store beans. January beans are trading at $10.71, March beans at $10.65, and July beans at $10.71. The market is telling you to bring them to us now.”
Corn spreads narrowed, but widened again. However, McCormick says, “In general, it’s the same situation. We’re telling producers to take advantage of the basis.”
Ag Market also encourages producers to keep an eye on the 2021 crop and start locking in margins. However, producers must not forget about the upcoming November World Agricultural Supply and Demand Estimates report, to be released Tuesday, Nov. 10.
“They didn’t make a lot of yield revisions in the October WASDE report. The trade is leaning toward some downward revisions in the corn and soybean crop, and some upward revisions of the demand aspect, especially on corn. We’re hoping to get some bullish numbers when that number is released by the USDA,” McCormick says.
