The market has been bucking trends here in August. Typically we see a slow downward grind from the end of June to Harvest. This year, dry weather seems to be feeding the bulls and now we also have the Pro Farmer Tour pumping some concern of our crop size into our market giving us a nice “pre-harvest gift”. See below chart.
No two years are ever the same and that is holding true as we head into this harvest. As we are finishing up our growing season, we are looking at an export demand that is far from robust. There is plenty still up for debate regarding yield, however. As we move into Oct/Nov and combines roll, we will learn more on the weight of each in the supply vs demand struggle.
As we near the end of the growing season, the producer has a decent idea of what this year’s production will look like. Use this time ahead of harvest to update your spreadsheets with any changes to yields, profitability goals, and production costs. Volatility has been constant and will continue to be the rest of the year. Therefore, it is important to know what percent sold you are and where you want your next sale to be in this fast moving market. Be ready to pull the trigger if/when we see profitable prices.
Please call any of the Aurora Cooperative grain merchandisers with any questions you may have.