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Grain market economist says soybean farmers should “take the money and run”
University of Minnesota Extension grain market economist Ed Usset is calling for a harvest sale with soybean prices up 20 percent the past eight weeks.
“My thought for several weeks has been just sell everything at harvest. We’ve had a $2 rally (and) we’ve got the best prices we’ve seen since before the Trade War broke out.”
He tells Brownfield as cash soybeans hover around $10 per-bushel, farmers should take the money and run.
“Some people might consider re-ownership with maybe options (like) some sort of buy and add the money option (and) selling an out of the money option to save some upside. The record there is mixed.”
Usset suggests rewarding the market with sales of both old and new crop soybeans.
He recommends a different approach for corn and says producers could place a hedge in the May or July contract with ideas of a modest carry and strengthening basis adding 20 to 30 cents to the harvest price.
Sell now based on what? What about market fundamentals?
What about low carry over?
What about the drought in South America?
What about the lack of crop in China?
What about the lack of supply domestically for all of 2021?
Ed Usset’s recommendations are unsound and based on nothing but speculation based on past performance.
Sell some and hold some back..
If I was focused on maximizing profit for brokers and buyers.. I would be saying the exact same thing.. For the brokers.. soybeans might not be this cheap for the next couple of years.. yea.. sell if you need to.. otherwise.. sell some.. store some..