Marketing Plan Crucial To Surviving Today’s Markets

USDA has placed the average price for corn in the $4.50/bu range for 2024 through
2026. That projection has, unfortunately, proven to be reality to date.

Cash corn prices for corn slipped below $4.00 in many locations this fall. The market doesn’t have much support above current levels because of adequate projected stocks in the US and a
significant South American crop.

Soybean and wheat markets are experiencing similar issues, with cash soybeans below $10.00 in many locations. The emergence of South America as the largest producer of corn and soybeans for the world has caused North American markets to be more of a price taker than a price maker.

Media stories indicate continued depression in grain prices. Further, we hear that manufacturers of machinery, parts, and other components necessary to produce grain are reducing output and even moving their facilities to other countries where labor is cheaper.

The resulting loss of good jobs does not seem to matter. And resulting losses of family sized farms does not seem to matter either, because a corporate backed operation will absorb it.

I want to take this opportunity to thank my National Farmers grain marketer. On my farm, I always consult with a grain marketer to discuss the pros and cons of my marketing plan. Eighteen months ago, we were discussing the decline of grain prices.

The recommendation was to sell some of the 2024 and 2025 crop at that time, even though neither of us was really satisfied with prices.

I delivered my 2024 contracted soybeans in mid October and received $2.53/bu above the posted cash price. I believe securing $2.53 above current price levels proves the absolute necessity of working with a marketing specialist to develop a plan. It can be crucial to surviving in today’s grain world,

We wish all of you producers a safe and bountiful harvest.