News

Pricing opportunities remain with local processing demand

The head of Michigan’s largest grain handler says growers have been taking advantage of significant increases in prices over the past six months and he expects the strong outlook to carry though the growing season.

“We’re coming off of very low ending stocks in corn and soybeans, ten, twelve-year lows in ending stocks,” he says.  “It takes more than one year to rebuild that pipeline.”

Bruce Sutherland with Michigan Agricultural Commodities tells Brownfield ending stocks for corn and soybeans have been a significant price driver along with growing exports and expanded regional processing throughout the Midwest.

“We’re going to see fairly strong demand in Michigan both for the old and new because of our processing growth in the state,” he explains.  “That’s going to be a regional factor and I think some other states have similar in-state processing demand.”

He’s encouraging farmers to lock in prices for the fall and market remaining old crop stocks to take advantage of the higher prices while they can.