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Minnesota farmer sees disconnect between grain markets and struggling U.S. crop

A southeast Minnesota farmer suggests there might be a disconnect between the grain markets and this year’s U.S. crop.

Les Anderson of Cannon Falls says drought has impacted his state and many others.

“I don’t think our yields can be that great overall when you look at how many areas have gotten hit, and I’m just sort of curious why these prices (are where they’re at) right now, especially on corn. It almost seems to me like (the market) has to be quite a bit oversold.”

He expects national yields to come under USDA expectations.

“We were down in Illinois at Farm Progress and a lot of variability going down that way, some places seen some tremendous corn and some places there was like very very short, ugly looking corn. And sort of like in golf, if you have a 10, it takes a lot of good holes to make up for that 10.”

Anderson says some input costs are down compared to last year, but high fuel prices are going to thin margins this fall.