News

Analyst cautious on crop size and storage space

A grain marketer says if corn condition remains favorable it is unlikely a strong rally will take place over the next few weeks.

“It seems like everyone is thinking we’re in for this record crop, both corn and soybeans, and so that’s what’s been weighing heavy on the market.”

Angie Setzer with Michigan-based Citizens Grain however cautions 2016 taught a very valuable lesson about crop progress reports and how the reports might not match final yields.

“If you look at areas that have been drier in the Corn Belt—Ohio, Michigan, parts of Indiana, and especially Iowa—it makes you wonder if it is possible for us to not only meet the past record but exceed it by three or four bushels to the acre.”

Setzer tells Brownfield backlogs caused by the pandemic and reduced demand, especially from the pork industry, could create storage issues come harvest which is why she’s aggressively booking harvest basis for customers.

“We’re definitely speaking for that space because things could get a little ugly here, especially if we have that warm dry fall that some are wanting to forecast.”

Setzer says seasonally the markets do tend to fall off at this time in the year as more confirmation of what’s in the field comes through over the next few months.