By Jon Scheve, Superior Feed Ingredients, LLC
The upcoming corn and soybean harvest is expected to generate the largest crop ever. Combine that with one of the largest carryouts ever and it’s panicking both farmers and end-users without enough storage. As a result, basis levels are at mid-harvest levels before we even begin, suggesting end-users are overwhelmed with grain arriving on their doorstep as farmers clear out space to make room for the crop that will be arriving in a few weeks. The market is paying to store any part of this crop for a while, which may spur some creative storage solutions.
On a positive note, corn futures seemed to bounce off the bottom by 10 cents this week, which may suggest this year’s corn low has arrived. If this turns out to be the case it would be the third year in a row for that to have happened at the end of August.