A market analyst says improving corn basis could create opportunities for farmers to move grain instead of paying continued storage costs.
Sam Hudson with Cornbelt Marketing tells Brownfield farmers have slowed grain selling, which helps the situation.
“If you’ve seen basis rally in your area 30 cents compared to what we saw even just 30 days ago, that’s an opportunity to stop storage or at least get stuff on wheels, get bins cored. That’s probably going to be top of mind here as you finish up harvest, especially in areas that maybe were a little wetter than desired as that took place.”
He says farmers could take advantage of a rise in prices over the winter if South American weather concerns provide support to the market.
“For December corn, if we find a reason to not only stabilize, but get a turnaround, I think you’re going to see resistance initially in that $4.75 to $4.85 zone,” he says. “It’s going to be tough to get back over that $5 mark unless you really rip that yield back. That’s probably possible by the January report, but I wouldn’t say by the November report.”
Hudson says corn harvest is nearing the finish line with lingering wet conditions potentially slowing the final stretch.
