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Market economist expects farmers to store grain “as best they can” this fall

The market is turning its focus back to weather as well as early harvest activity in the south now that USDA’s latest supply and demand estimates are in the rear-view.

University of Minnesota Extension grain marketing economist Ed Usset says while it might be premature to form a strong opinion on the U.S. crop, it is safe to assume most farmers want to store it.

“Whatever their storage capacity is, they’re going to put it away. And frankly, if I’m advising people right now that don’t have it priced, I’m going to (tell them) go ahead and put it away as best you can.”

He expects piles of grain and a defensive basis this fall.

“But I would anticipate some sort of normal price rise into the new year. What I mean is the basis will get better, the Board will stabilize and we’ll have modestly better prices going into the next year.”

But for the market to really turn around, he tells Brownfield a major player like Brazil or Argentina needs to stumble on the production side.