AM Minnesota Grain Marketing Specialist Ed Usset
Be sure to listen to Tuesday's AM Minnesota Program with Ed Usset who is a Grain Marketing Specialist with the University of Minnesota's Center for Farm Financial Management. We were talking about many farmers with "sellers remorse" having sold too much grain too early and missed out on much of this big rally. Ed said later on last summer he predicted that corn and beans would rally into fall. He put it in a column that were in a couple of different publications. However, he was thinking of a rally in corn and beans of 5 or 10 percent, not 50 percent or more!
We also spent some time talking about new crop corn and bean prices and the huge inverse at this time of year. By inverse we mean that old crop prices are much higher than new crop. New crop beans have bids of around two dollars a bushel lower than new crop and corn on one dollar lower. Many farmers are thinking why would I sell new crop corn or beans so much lower than old crop? Maybe because by fall they may be much lower?
Ed said he looked back at previous years with a big inverse like this year. In 12 of 13 years the price of corn was much lower in the fall than it was in February. For beans they were lower in the fall than February in 12 of 14 years. That is pretty high odds that new crop corn and bean cash bids will be lower this fall than now in February. However, there are many unknowns like production in South America, a drought this summer in the United States just to mention a couple.
You can listen to grain Marketing Specialist Ed Usset on our website as a podcast. Go to kdhlradio.com and near the top there is a black banner that says AM Minnesota podcast. When you click on that you will see a listing of the recant AM Minnesota Programs.