Almost like clockwork this previous week, unpriced farmers sold most of their remaining grain stored at elevators that was still on DP. By some estimates the amount of corn sold could have been nearly 10% of the ’16 production. Unfortunately, this price slide in late August has become a common trend the past several years. After several days of farmers selling at disappointing levels, there was a small bounce last Thursday and increases since then.
With many DP programs behind us, it’s still uncertain if the market will now continue to trend higher. There are still farmers with unpriced grain in home storage that may need to be sold before harvest. Some elevators are letting farmers deliver old crop against new crop sales. This could help prevent further decline in prices.
There is simply too much grain in the U.S. and globally. This heavy supply will continue to weigh on prices until at least March 31 when ’18 planting intention estimates are reported.