News

Minnesota farmer speaks candidly about prospects of $4 corn

A southeast Minnesota farmer says he thinks it will probably be another year before corn prices stay consistently above $4.

Ed McNamara from Goodhue County tells Brownfield there are some factors that could change his outlook.

“If that drought in the south expands up into Nebraska and the (drought) in the north comes down, (there) could be (higher corn prices).  Most guys would say if they got $4 dollars at the local elevator they’d probably take it.”

But McNamara is quick to point out the local price is usually not that close to the futures price.

“Not by a long-shot, (chuckles) there’s that wicked thing called basis.  But local demand (has been good).  The ethanol plant in Claremont is pretty competitive with the bid.  And rail probably might be a little more competitive than the River.”

McNamara is paying close attention to planting delays in key corn-growing areas as he puts together a marketing plan.

He’s also watching ongoing trade negotiations between the U.S., its NAFTA partners, and China.