As summer winds down, many farmers are working to finish moving the last of their 2024 old crop grain out of storage. But with market pressure mounting and prices slipping, it’s becoming more difficult to find strong opportunities. The clock is ticking, and making the most of what’s left in the bin could make a big difference on the year’s bottom line. Today, we’re taking a look at key strategies and signals to help farmers make informed decisions as they market the tail end of their old crop.
Ed Usset, an agricultural economist who closely tracks seasonal trends, offers insight into the current market dynamics. He says we typically see some kind of rally between spring and summer, but so far, the usual signals just haven’t shown up. That leaves farmers in a tough spot as they try to time their final sales.
There’s a growing belief among market watchers that harvest basis levels may soften even if futures remain steady. Usset shares his thoughts on how farmers can prepare for that possibility.
Usset also weighs in on the role deferred contracts will soon play in marketing decisions. While some view them as a potential opportunity compared to harvest prices, he cautions that the risk involved may outweigh the reward in the current market environment.
With seasonal rallies falling short and basis levels under pressure, farmers are left navigating a tougher marketing environment for their remaining old crop. Deferred contracts may offer some flexibility, but they carry risks that may not pencil out. It’s a critical time to sit down with your financial and crop marketing advisors to evaluate the best path forward.
