News
Less exports should shift more beans to storage
An ag economist calls Thursday’s USDA’s reports a bit surprising.
Kevin McNew with Farmers Business Network tells Brownfield the USDA numbers were about a bushel lower for both corn and soybeans than what traders were expecting. “The negative to it is that trade exports are really bad and the USDA penciled that into this number. Soybean exports were slashed by a significant margin, corn exports also went down.”
McNew, speaking to Brownfield at the NAFB Convention in Kansas City, says the best option for farmers right now is to store soybeans while the trade war continues. “You have to store your way out of it. You’re going to see basis improvements. If we get a resolution to the China issue, you’ll see upside in the futures markets. The best way to do that is through storing beans.”
He says prices are not expected to see any significant increases into 2019, especially with an average to above average South American crop more than likely as the weather shifts toward El Nino conditions.
AUDIO: Interview with Kevin McNew
Frist Kevin McNew said you need to store your beans and in the next sentence he sees no price improvement in 2019: Which is it ,you can’t have it both ways