What is in this article?:
- On-farm storage generally pays, caution urged this year
- Market extremely tight
The question is how much of a premium storage will pay this year?
Market extremely tight
Even so, Roberts said the corn market is extremely tight.
He noted that because of the late maturity of the crop, market watchers may not have a completely accurate idea of the scope of the crop even by the October USDA production estimates, when the Department will fully incorporate Farm Service Agency acreage data.
With that uncertainty in mind, Roberts’ recommendation to farmers is to get a futures price locked in when opportunities present themselves in the day-to-day volatility of the market.
“I think we’ll see a lot more corn moving from the farm in January and February, so watch the carries. If we see December corn futures above $7.80 before harvest, that’s a good opportunity to sell.
“I think most people have done a lot of selling already, so now it’s sit back and watch the spreads to figure out storage. I’d be very leery of how much I’m going to store this year.”